KUALA LUMPUR (Feb 24): UEM Sunrise Bhd’s net loss in the fourth quarter ended Dec 31, 2021 (4QFY21) widened further to RM152.26 million from RM134.66 million in the same period last year (4QFY20) on foreign exchange losses.
In a Bursa Malaysia filing on Wednesday (Feb 23), the property developer said its quarterly revenue fell by 18.85% to RM496.34 million from RM611.64 million in 4QFY20.
For the full year ended Dec 31 (FY21), the group said net loss narrowed to RM214.33 million from RM277.28 million in the previous year (FY20) due to improvement in operating expenses.
Annual revenue, on the other hand, surged by 6.6% to RM1.21 billion from RM1.14 billion, underpinned by higher construction progress and billings mainly from Residensi Solaris Parq in Dutamas, Aspira ParkHomes in Gerbang Nusajaya, Iskandar Puteri, Serene Heights Bangi and Kiara Kasih in Mont’ Kiara.
On a quarterly basis, the group’s net loss swelled in 4QFY21 from a net loss of RM50.38 million in the immediate preceding quarter (3QFY21) while revenue declined from RM213.04 million reported in 3QFY21.
Commenting on the group’s financial performance, UEM Sunrise CEO, Sufian Abdullah said the circumstances revolving around the pandemic for the past two years have impacted its operations and the way it conducts business.
“UEM Sunrise was making progress in terms of recovery and was narrowing its losses in the first half of 2021 compared with the same period in 2020.
“However, the full lockdown imposed on 1 June 2021 compelled the Company to stop construction activities, cease operations of retail complexes and shut down sales galleries.
“Our product launches were delayed which resulted in only RM550 million worth of GDV launched in 2021,” he said in a statement.
Sufian added the group is pleased that it has exceeded its target of RM1.2 billion and has set a higher target in 2022 of RM1.5 billion, in line with what the group achieved last year.
Although we foresee challenges ahead and this includes the absence of the Home Ownership Campaign, the rise in prices of construction materials and the likelihood of an interest rate hike, we feel that property sales in general remains strong premised on our current sales bookings and the type of products we intend to launch this year.
“Improvements in buying sentiment are expected this year strengthening property sales as buyers continue to be on a lookout for properties leveraging on current property prices and low interest rate while it still lasts.”
Shares in UEM Sunrise finished five sen or 1.43% up at 35.5 sen on Wednesday, giving it a market capitalisation of RM1.79 billion.
Edited by Pauline Ng
Get the latest news @ www.EdgeProp.my
Subscribe to our Telegram channel for the latest stories and updates