UEM Sunrise’s sales rise 38% YoY to RM232.6 mil

• The company’s revenue of RM225.0 million, was largely driven by property development, substantially contributed by the progress of projects.

KUALA LUMPUR (May 29): UEM Sunrise Bhd saw sales of RM232.6 million, an improvement of 38% year-on-year (YoY), or RM64 million.

In a media release on its financial results for the first quarter of 2024 ending March 31, 2024 (1Q2024), UEM Sunrise stated that this “reflects solid demand for properties reasonably priced between RM500,000 to RM1 million per unit in both Central and Southern regions”.

The company’s revenue of RM225.0 million, was largely driven by property development, substantially contributed by the progress of projects including Residensi Allevia in Mont’Kiara and KAIA Heights in Seri Kembangan within the Central region, as well as the developments at Senadi Hills and Aspira Gardens in Iskandar Puteri.

The revenue contribution was further supported by monetisation of non-strategic land of RM48 million in line with its ongoing asset monetisation strategy.

It also revealed that gross profit softened to RM70.3 million, equivalent to a gross profit margin of 31% while operating profit amounted to RM32 million. “This is partly due to higher selling and marketing expenses on promotional campaigns for ongoing projects, as well as the recognition of higher project cost savings from completed projects in the corresponding period of last year,” it added.

“In line with the above, the company reported a lower profit after tax and non-controlling interests of RM8.2 million for the current quarter. Despite these challenges, the company maintained its financial resilience with gross and net gearing ratios of 0.62 times and 0.47 times, respectively. Notably, inventories reduced by 33% YoY to RM118 million from RM176 million in the first quarter of 2023, indicating effective inventory strategies,” stated UEM Sunrise.

Meanwhile, cash balances remained robust at RM1 billion as of March, 31, 2024 “underlining the company’s commitment in maintaining a solid balance sheet”.

Unbilled sales stood at RM2.6 billion, which is expected to be substantially recognised over the next 18 to 36 months, indicating a steady revenue pipeline to position for future growth and sustainability.

"Despite the soft start to the year, UEM Sunrise continues to demonstrate its resilience and adaptability while capitalising on growth opportunities. Our strategic focus on customer-centric and sustainable developments has been a key driver of our performance.

“We are pleased to broaden our development efforts with new partnerships on the development of a 40-acre Renewable Energy (RE) Industrial Park to further enhance the value of our properties in the Southern region,” said Sufian Abdullah, chief executive officer of UEM Sunrise.

The company plans to advance on its strategic priorities in line with the three-phase strategic turnaround plan and the newly introduced Transformation Plan, U2030, aimed at becoming “a balanced real estate player”, said UEM Sunries. This entails a focused approach on ensuring disciplined product launch pipeline throughout 2024, with a target launch GDV of RM0.8 billion. These launches will feature products priced between RM500,000 to RM1 million per unit, reflecting its commitment to offering reasonable and attainable properties to its customers.

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