UEM Sunrise 1Q net profit up 8.5%

KUALA LUMPUR (May 22): Property developer UEM Sunrise Bhd's net profit rose 8.5% to RM25.29 million in the first quarter ended March 31, 2018 (1QFY18) from RM23.31 million a year ago, on higher net contribution from associates and joint ventures, albeit a lower operating profit driven by lower revenue.

Earnings per share rose to 0.56 sen, compared with 0.51 sen a year ago.

Quarterly revenue, however, fell 31.5% to RM287.74 million in 1QFY18, from RM420.34 million in 1QFY17.

In a filing with Bursa Malaysia, UEM Sunrise attributed the lower quarterly revenue to completion of Teega, Arcoris and Residensi 22 in the prior year, while in 1QFY18, the new launches of Solaris Parq, Serimbun and Kiara Kasih are still at initial stages of development.

"Nonetheless, the impact of this project development progress cycle to a certain extent, is cushioned by the completion of a land sale in the current quarter under review and good construction progress from Almas, Sefina and Estuari projects," the filing added.

On prospects for the current financial year ending Dec 31, 218 (FY18), UEM Sunrise said it remains prudent in its sales and gross development value targets of RM1.2 billion and RM1 billion respectively for 2018, and is ready to activate further launches, depending on market condition.

The group’s unbilled sales stood at RM4.8 billion as at March 31, 2018.

At 2.34pm, UEM Sunrise shares ended the morning session one sen or 1.19% up at 85 sen today, with 341,200 shares done, bringing a market capitalisation of RM3.83 billion. — theedgemarkets.com

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