UEM Sunrise’s 3Q losses narrow on greater construction activities and higher sales

KUALA LUMPUR (Nov 24): While UEM Sunrise Bhd remained in the red in the third quarter ended Sept 30, 2020 (3QFY20), the net loss narrowed to RM28.87 million, from RM93.36 million in 2QFY20.

This was achieved on the back of a 94% jump in revenue to RM217.44 million, from RM111.96 million in 2QFY20, the group’s stock exchange filing showed.

The property developer said the higher revenue was due to higher sales and construction activities during the Recovery Movement Control Order (RMCO) where restrictions were relaxed.

The lower loss was in line with higher revenue, the absence of costs on written down inventories and lower unfavourable share of results from joint ventures and associates, it added.

UEM Sunrise’s 3QFY20 performance however compares unfavourably against its 3QFY19 results.

The group had reported a net profit of RM27.1 million in 3QFY19. The revenue then was RM327.61 million, up 33.63% compared with the 3QFY20 figure.

The poorer top line and bottom line performance compared with 3QFY19 were due to lower contributions from both the group’s international and domestic projects, as well as the slower completion of work during the MCO and Conditional MCO periods.

Additionally, it saw an unfavourable share of results from joint ventures and associates.

UEM Sunrise posted a net loss of RM144.17 million for the nine months ended Sept 30, 2020, compared with a net profit of RM97.56 million in the same period last year.

Nine-month revenue fell to RM572.5 million, from RM1.75 billion a year ago.

In a separate statement, UEM Sunrise said property sales had picked up in 3QFY20 on the back of its high-rise developments Residensi AVA in Kiara Bay, Residensi Astrea in Mont’Kiara and Residensi Solaris Parq in Dutamas, with an average take-up of some 70% at the end of September.

Total sales plus commitment as at the end of October stood at RM700 million, with Residensi AVA being the main contributor, followed by Serene Heights Bangi and Estuari Gardens in Puteri Harbour.  

UEM Sunrise said it launched RM250 million worth of properties to-date with plans to launch another RM700 million before the end of the year, the bulk of it from Residensi Allevia in Mont’Kiara, with a total gross development value (GDV) of RM545 million.

“The two towers with 294 residential units have registered strong interests among potential buyers looking for expansive built-up areas,” the group said. 

This is followed by Senadi Hillsin Iskandar Puteri with a total GDV of RM100 million, and Serene Heights Bangi (Phase 1F), with a GDV of RM50 million.

The group said it is also focused on reducing inventories which as at Sept 30 is RM498 million. The group’s unbilled sales as at the end of the period is RM1.7 billion.

UEM Sunrise is maintaining its GDV and sales (including land sales) targets of RM1 billion each for the remaining part of the year.

Shares of UEM Sunrise closed 4.76% or two sen lower at 40 sen, valuing the group at RM2.02 billion. The counter saw 1.76 million shares traded.

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