KUALA LUMPUR, 23 May 2016 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) will focus on strengthening its fundamentals and have thus outlined several key priorities to steer growth and help weather the challenging property market in 2016 and beyond.
Amongst the key priorities include establishing a comprehensive marketing strategy to further improve marketing communication, sales force performance, pricing/promotional planning and external collaborations. In addition, the Company will intensify its systems and processes to ensure timely and quality delivery; further build its reputation as a value-driven developer; nurture a service oriented culture in the organisation; and managing operating costs.
Dato’ Izzaddin Idris, Executive Director and Board Member of UEM Sunrise said this during the Company’s 8th Annual General Meeting held today, 23 May.
“We foresee 2016 to be a very challenging year for the sector. We share the views of Ratings Agency Malaysia whereby we expect demand to stay subdued as the Malaysian economy slows, tight lending condition continue to linger, and consumer as well as business sentiment remain passive,” said Dato’ Izzaddin.
On the Company’s plan for 2016, Dato’ Izzaddin said UEM Sunrise will continue its efforts to deliver diverse range of products with strong concepts and quality such as the newly launched Melia Residences (Phase 1 to 3) – 366 uniquely crafted landed strata units in Gerbang Nusajaya with an estimated gross development value (“GDV”) of RM280 million.
Iskandar Puteri will remain UEM Sunrise’s long term growth driver in the Southern Region. It plans to intensify the development of Gerbang Nusajaya into the commercial and business engine of Iskandar Puteri and gateway of Iskandar Malaysia.
Apart from the launch of its subsequent developments, and clearing out existing inventories, UEM Sunrise will continue to collaborate with strategic partners as part of its growth strategy and to add value to its ongoing projects.
In view of current consumers’ sentiment and market demand, UEM Sunrise will also continue to foster organic growth via property related businesses.
“The current property down cycle is an opportune time for us to concentrate on creating a recurring income base for the Company by leveraging on our existing projects such as our retail businesses – Publika in Solaris Dutamas, Kuala Lumpur and Mall of Medini in Iskandar Puteri; as well as expanding our revenue from property management, project management, leasing services and hospitality,” said Dato’ Izzaddin.
For financial year ended 31 December 2015 (“FY2015”), UEM Sunrise recorded a total revenue of RM1.75 billion, a decrease of approximately 34% from RM2.66 billion reported the previous year; mainly due to a significant reduction in land sale revenue, while Profit After Tax and Non-Controlling Interest (“PATANCI”) stood at RM257.21 million versus RM479.9 million recorded in 2014.
In 2015, UEM Sunrise launched three projects – Serene Heights Bangi, a nature inspired township in Selangor; Residensi Sefina Mont’Kiara, a unique cruise ship-themed high rise residence in Mont’Kiara, Kuala Lumpur; and Estuari Gardens, its first landed residential project in the exclusive enclave of Puteri Harbour in Iskandar Puteri. It also launched Conservatory in October 2015, a 42-storey residential development located on Mackenzie Street, Melbourne, Australia. These launches in the Southern, Central and International regions released a total of 1,900 units into the market with a combined total GDV of over RM2.63 billion.
UEM Sunrise’s 8th AGM marked the Company’s fourth consecutive dividend pay-out since its listing in 2008. For FY2015, UEM Sunrise has obtained shareholder’s approval for the Company’s first and final single tier dividend of 1.6 sen per ordinary share of RM0.50 each.