UOA records lower profit for 3Q

KUALA LUMPUR: UOA Development Bhd has entered into sale and purchase agreements (SPA) through its wholly-owned subsidiaries to buy seven pieces of freehold land in Sentul, Kuala Lumpur worth RM130.3 million.

The company released its quarterly results yesterday. Its net profit was down 8.8% to RM76.5 million for the third quarter ended Sept 30 on the back of lower revenue of RM216 million.

For the nine months ended Sept 30, 2013, the group reported revenue of RM893.5 million, an increase of 42% from RM627.9 million in the previous corresponding period. Its net profit of RM274 million was 19% higher than the RM229.8 million recorded previously.

In a filing with Bursa Malaysia, UOA said its subsidiaries, Infinite Accomplishment Sdn Bhd and Orient Housing Development Sdn Bhd, had entered into the respective SPA with several vendors.

The vendors for the proposed acquisition include four investment holding companies — Yamashoppe Sdn Bhd, Liew Meow Realty Sdn Bhd, Khiam Huat Industrial Works Sdn Bhd and Khian Huat Industrial Works Sdn Bhd.

The remaining vendors are Tan Mui Chwi, Tan Ngee Hong, and the Ng family —  Ng Leong Chye, Ng Kong Lean and Ng Neo Eng.

“The purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration the good development potential of the Sentul land due to its accessibility and close proximity to the city centre,” it said.

The 13.5-acre tract is said to be in close proximity to the Kuala Lumpur city centre, and accessible via the Duta-Ulu Kelang Expressway (Duke).

On its earnings, the group’s revenue and profit attributable to the company were mainly derived from the progressive recognition of the group’s ongoing development projects namely One@Bukit Ceylon Hotel Suites, Desa Green, Le Yuan Residence, Vertical Office Suites and Scenaria @ North Kiara Hills”, UOA said.

“The disposal of the group’s inventories at Healthcare Centre, Binjai 8 and Kepong Business Park during the quarter under review also contributed to the increase in revenue and profit”, it added in its filing with Bursa yesterday.

The group’s profit attributable to the owners of RM76.5 million for 3Q13 was lower than the immediate preceding quarter of RM78.6 million due to a higher profit recorded in the preceding quarter contributed by sales of an office tower in The Horizon, Bangsar South.

Basic earnings per share (EPS) for its current quarter stood at 5.83 sen. Its year-to-date EPS of 21.35 sen was more than the 18.99 sen in the previous corresponding period.

UOA noted that sales of completed properties such as Binjai 8 and The Horizon continued to contribute significantly to the total sales.

“While there were no new launches in 3Q13, our sales continued to improve, bringing the total new sales for the nine months ended Sept 30, 2013, to RM1.57 billion,” it said.

It also said new launches during the year, such as Vertical Office Suites, Desa Green, and Scenaria at North Kiara Hills formed a substantial proportion of the new sales.

Total unbilled sales as at Sept 30, 2013, stood at about RM1.2 billion.

UOA expects South View, the project to be launched in 4Q13, to receive encouraging response.

“Barring unforeseen circumstances, the development of the group’s land in Jalan Ipoh and Kepong is expected to commence in 2014”, it said.



This article first appeared in The Edge Financial Daily, on November 21, 2013.