UOA Development 3Q net profit down 18% on higher expenses

KUALA LUMPUR (Nov 21): UOA Development Bhd's net profit for its third quarter ended Sept 30, 2017 (3QFY17) dropped 18.19% to RM90.36 million, from RM110.44 million a year ago, dragged by higher expenses incurred in the period.

Earnings per share fell to 5.26 sen from 6.85 sen, the group said in a filing today.

Quarterly revenue rose 13.96% to RM261.63 million from RM229.57 million last year, which UOA Development attributed to its ongoing projects and sale of completed residential and office units in Klang Valley.

Cumulative net profit for the first three quarters fell 9.48% to RM299.38 million or 18.03 sen per share, from RM330.75 million or 21.32 sen per share in the previous corresponding period.

Higher property development profit incurred in the period was offset by lower profit from its construction segment, further dragged by losses in its non-core operations.

This is despite cumulative revenue rising 21.61% to RM882.33 million, from RM725.55 million previously.

On prospects, UOA Development said: "The total unbilled sales as at Sept 30, 2017 amounted to approximately RM1.41 billion.

"The group will maintain its focus on development in Greater Kuala Lumpur and continue to source for opportune development land acquisition at strategic locations."

UOA Development's share price slid 3 sen or 1.21% to close at RM2.45 today, giving the property developer a market capitalisation of RM4.25 billion. — theedgemarkets.com

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