UEM Edgenta swings back to profit in 2Q

KUALA LUMPUR (Aug 27): UEM Edgenta Bhd posted a net profit of RM6.13 million in the second quarter ended June 30, 2021 (2QFY21) compared to a net loss of RM26.91 million a year ago, thanks to higher revenue and lower expenses.  

It is also worth noting that its financial performance in 2QFY20 was dragged by an impairment recognised for completed property inventories totalling RM50 million.

Its quarterly revenue grew 20.1% to RM538.6 million in 2QFY21 from RM448.47 million a year ago, thanks to higher revenue in all businesses, namely asset management and infrastructure solutions.

Compared with the immediate preceding quarter (1QFY21), its revenue grew 11.38% from RM483.55 million as both its asset management and infrastructure solutions recorded higher contributions. Net profit, however, declined 8.28% from RM6.69 million as contribution from its asset management business declined amid higher repair and maintenance expenses for healthcare support, and lower revenue from its property and facility solutions.

For the first six months of FY21 (1HFY21), the company returned to the black with a net profit of RM12.83 million against a net loss of RM15.76 million recorded in the previous January-June period, as revenue rose 7.56% to RM1.02 billion from RM950.34 million.

"Growth in revenue for both year-on-year and quarter-on-quarter financial performance is a testament of the company’s prudent efforts and business fundamentals’ resiliency through its diversified portfolio and regional footprint. As of June 30, 2021, UEM Edgenta’s balance sheet remains healthy by maintaining a low gearing ratio at 0.3 times," UEM Edgenta said in a statement.

Managing director-cum-chief executive officer Syahrunizam Samsudin said the company's contract wins across its businesses totalled RM720 million to date. “We are also on track with our transformation plans as part of our 'Edgenta of the Future 2025' vision with the recent launch of our first digital ecosystem platform, Edgenta NXT, as well as QuickMed, the first cloud-based digital healthcare solution,” he added.

QuickMed, he said, is the key enabler for the nation’s first private Covid-19 assessment centre (CAC), equipped with a Polymerase Chain Reaction mobile lab, as well as a home quarantine monitoring System (HQMS) via RFID e-bracelets which will enable a continuous 24-hour a day monitoring for Covid-19 patients.

Looking forward, Syahrunizam said UEM Edgenta will continue to focus on managing costs and maintaining prudent cash flow management, to ensure business resiliency while continuing to pursue potential opportunities and investments for growth in selected businesses.

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