KUALA LUMPUR (May 27): Asset management and infrastructure solutions company UEM Edgenta Bhd saw its net profit jump 40.5% to RM9.4 million in the first quarter ended March 31, 2022 (1QFY22) from RM6.69 million a year ago, driven by its infrastructure solutions division.
This resulted in a higher earnings per share of 1.13 sen for 1QFY22 compared with 0.8 sen for 1QFY21, the company’s bourse filing on Thursday (May 26) showed.
Quarterly revenue rose 11.5% to RM539.21 million, from RM483.55 million in 1QFY21.
“The result of the asset management segment shows a net decrease of RM70,000, resulting from higher profit before tax [PBT] for healthcare support from new contracts which is mitigated by lower PBT for property and facility solutions due to lesser ongoing contracts.
“Infrastructure solutions posted better results of RM2.9 million, an increase of RM0.7 million compared to the preceding year's corresponding quarter. The increase is mainly due to higher revenue generated,” it added.
On prospects, UEM Edgenta said it faces various headwinds such as the Russian-Ukraine war, global inflationary pressure, risk of the emergence of new variants of Covid-19 and the implementation of minimum wage in Malaysia.
"The company remains cautiously optimistic on the outlook for 2022, while maintaining the agility to take the necessary measures in responding to these uncertainties," it said.
In a separate statement, UEM Edgenta said its order book stands at RM10.8 billion, which will keep it busy until 2038.
It continued to gain contracts during the current quarter and has secured over RM500 million worth of new contracts, achieving 40% of FY2022 target orderbook replenishment amounting up to RM1.3 billion.
“International markets contributed about 60% of these new contracts, a testament to the company’s international market expansion strategy. UEM Edgenta’s healthcare support division, particularly commercial contracts, continued to anchor 66% of these new wins,” it said.
UEM Edgenta managing director and chief executive officer Syahrunizam Samsudin said the company remains cautiously optimistic on its outlook, as the positive prospects driven by the relaxation of international travel restrictions and the nation transitioning towards the endemic phase are countered by various headwinds, namely global inflationary pressures, supply chain disruption and market volatility.
“As an organisation, we will continue to innovate and remain agile in responding to these challenges,” he said.
Backed by a healthy balance sheet with a low gross gearing ratio of 0.33 times and a strong net cash position and bank balances of RM121.4 million, the company continues to enhance its delivery models in improving operational efficiency and structural cost optimisation in achieving long term competitive advantage and drive long term sustainability in manoeuvring a continuing challenging business landscape, according to Syahrunizam.
UEM Edgenta shares closed down three sen or 1.92% at RM1.53 on Thursday, bringing it a market capitalisation of RM1.27 billion.
Edited by Kang Siew Li
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