UOA Development posts RM41.9 mil 1Q profit, locks in 10 sen final dividend and RM612 mil unbilled sales

PETALING JAYA (May 27): UOA Development Bhd has opened its 2026 financial year with a first‑quarter net profit of RM41.9 million and RM130.7 million in new property sales, while shareholders have approved a 10 sen final dividend for FY2025 and renewed key mandates at the group’s 22nd AGM.

It said in a Bursa filing that for the three months ended March 31, 2026 (1QFY2026), it had reported revenue of RM113.9 million, with profit after tax and minority interests (Patami) at RM41.9 million, according to its quarterly report and accompanying media release. The performance was mainly driven by the progressive recognition of ongoing residential projects, namely Bamboo Hills Residences, Aster Hill, Duo Tower and Aethera Residences.

Unbilled sales stood at about RM612.4 million as at end‑March, providing a multi‑year earnings pipeline as these projects move through their construction and billing cycle. New property sales in the quarter came in at approximately RM130.7 million, also largely contributed by Aethera Residences, Duo Tower, Bamboo Hills Residences and Aster Hill.

At the balance‑sheet level, the group remained strongly equity‑backed and in a net‑cash position. Total assets were RM6.72 billion as at March 31, 2026, while equity attributable to owners of the company rose to RM5.95 billion, translating into net assets per share of RM2.24 compared with RM2.25 at end‑FY2025. 

The group continued to report no borrowings or debt securities, supported by a large pool of cash, fixed deposits and short‑term investments.

Shareholders yesterday approved a single‑tier final dividend of 10 sen per share in respect of the financial year ended Dec 31, 2025. 

Based on 2,655,003,300 ordinary shares net of treasury shares, the payout amounts to an estimated RM265.5 million. The dividend reinvestment scheme (DRS) mandate was also renewed, allowing UOA Development to offer new shares in lieu of cash for future distributions when appropriate.

All resolutions tabled at the 22nd AGM were passed by poll, with the results validated by independent scrutineer Quantegic Services Sdn Bhd. Shareholders re‑elected directors Kong Pak Lim and Tuan Ramley Alan, and re‑appointed Grant Thornton Malaysia PLT as auditors for the ensuing year, with authority for the board to fix their remuneration. 

Mandates to issue shares under Sections 75 and 76 of the Companies Act 2016, to undertake share buy‑backs, and to renew recurrent related party transaction (RRPT) mandates with UOA Holdings Group and Transmetro Group were also approved.

In its outlook commentary, UOA Development said it “continues to explore strategic opportunities for future growth and expansion”, and highlighted that unbilled sales of RM612.4 million will be recognised progressively over the coming years as projects are delivered.

Second half – earnings softness, valuation impacts and shareholder signals

On a year‑on‑year basis, however, 1QFY2026 results came in lower than the corresponding quarter. Revenue of RM113.9 million was down 25.1% from RM152.1 million in 1QFY2025, while profit before tax eased 43.0% to RM53.5 million from RM93.9 million previously. Patami declined by 43.3% from RM73.9 million a year earlier, with basic earnings per share (EPS) at 1.58 sen versus 2.82 sen.

The quarterly report attributes the softer performance mainly to lower development revenue and a fair value loss of RM12.3 million on investment properties during the quarter, against no similar adjustment in the same period last year. 

Administrative and general expenses were higher at RM54.9 million (1QFY2025: RM47.1 million), while other expenses remained broadly flat at RM25.3 million. Other income, including investment income, stayed sizeable at RM103.9 million, and finance costs were minimal at RM42,000, reflecting the absence of borrowings.

Quarter‑on‑quarter, UOA Development’s profit before tax fell from RM279.1 million in 4QFY2025 to RM53.5 million in 1QFY2026, with revenue declining from RM174.7 million. The group explained that the preceding quarter had been boosted by higher fair value gains on investment properties and stronger revenue recognition from the medical centre in Bangsar South, which was completed last year.

On the capital side, several AGM resolutions drew more substantial minority voting blocks than others, even though all were carried. The general share‑issuance authority under Sections 75 and 76 was supported by about 77.6% of voted shares, with roughly 22.4% against, while the share buy‑back mandate saw around 84.4% of votes in favour and 15.6% opposed. 

The RRPT mandates with UOA Holdings Group and Transmetro Group were renewed with approximately 89.5% support and 10.5% dissent, while director re‑election votes for Kong Pak Lim registered about 93.5% for and 6.5% against. 

Separately, the group continues to carry a sizeable contingent tax exposure at the subsidiary level. Distinctive Acres Sdn Bhd, a wholly‑owned unit, has been served with notices of additional assessment for year of assessment 2020 totalling RM165.7 million, arising from the Inland Revenue Board’s treatment of gains on the disposal of UOA Corporate Tower as subject to income tax rather than real property gains tax. 

The company has filed an appeal (Form Q) and, based on advice from its tax consultants, the board believes it has a strong basis to challenge the assessment and has not made a provision as at March 31, 2026.

Against that backdrop, UOA Development emphasised in its notes that it sees the Malaysian economy as remaining resilient, citing Bank Negara Malaysia’s first‑quarter 2026 GDP growth figure of 5.4% and the central bank’s full‑year growth projection of 4%–5%, driven by domestic demand and continued export expansion in electrical and electronics. 

The group is positioning its current portfolio — particularly Aethera Residences, Duo Tower, Bamboo Hills Residences and Aster Hill — within that demand environment, while continuing to evaluate new opportunities in line with its focus on Klang Valley projects.