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Higher revenue lifts UEM Land earnings up 290%

KUALA LUMPUR: UEM Land Bhd’s net profit for its first quarter ended March 31, 2013 (1QFY13) soared 290% to RM211.1 million from RM54.2 million in 1QFY12.

This was achieved on higher revenue of  RM711.5 million, compared with RM303.7 million in 1QFY12. The growth was attributed to the completion of the sale of its land in Puteri Harbour, Johor.

“The group had on Dec 14 last year and Jan 8 this year entered into separate sale and purchase agreements with Liberty Bridge Sdn Bhd to sell 43.6 acres (17.4ha) of land for a total sale value of RM400.8 million,” said the group in its filing with Bursa Malaysia yesterday.

“However, this was offset by a lower property development contribution for the current quarter. The fewer working days in the current quarter  compared to the immediate preceding quarter was also a factor for the lower property development contribution,” it added.

There was no interim dividend declared for the quarter.

CIMB Research head Terence Wong is bullish on the group and said its sales numbers were strong, putting UEM Land in a good position to achieve its full-year target of RM3 billion.

“The prospects for the group is very good, especially in Nusajaya as well as Iskandar Malaysia in general. It is one of my top two picks for the property sector,” he said.

On its outlook, UEM Land said it is optimistic about its prospects this year given the progress of its ongoing projects and its planned launches for the year.

“Ongoing projects such as Teega, Arcoris, Verdi, Summer Suites, Quintet and phased developments in Symphony Hills, East Ledang, Nusa Idaman and Nusa Bayu are progressing well.

“These ongoing projects have total unbilled sales of RM3.55 billion as at March 31, 2013,” noted UEM Land.

For this year, the group will launch several projects such as CS1, a mixed development and D’Estuary, a residential development in Puteri Harbour as well as new phases in East Ledang, Nusa Idaman and Nusa Bayu this year.

Apart from Johor, the group has plans to launch MK22 in Mont’Kiara in Kuala Lumpur this year.


This article first appeared in The Edge Financial Daily, on May 29, 2013.

 

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