KUALA LUMPUR, 30 August 2016 – UEM Sunrise Berhad (“UEM Sunrise” or the “Company”) today announced its financial results for the six months ended 30 June 2016 where total revenue recorded for the period stood at RM795.6 million as compared to RM789.8 million reported for the corresponding period in 2015, an increase of approximately 1%. UEM Sunrise’s profit after tax and non-controlling interest for the six month period stood at RM57.6 million compared to RM137.0 million in the same period last year, a decline of 58% mainly due to lower gross profit margin as well as one-off items recorded in the corresponding financial period last year.
Property development activities contributed 81% of total revenue for the current period with the three major revenue contributors being Teega in Puteri Harbour, Iskandar Puteri; Aurora Melbourne Central in Melbourne, Australia and Arcoris Mont’Kiara, Kuala Lumpur in line with construction progress recorded for each of the projects. The disposal of industrial land parcels within the Southern Industrial & Logistics Clusters (“SiLC”) in Iskandar Puteri to AMOREPACIFIC Corporation, a South Korea-based cosmetics company contributed close to 12% of total revenue for the current financial period.
Total property development sales for the period declined to RM427.1 million from RM600.4 million in the same period last year mainly due to a lower contribution from international sales in the current period. On the local front, both the Central and Southern Regions contributed around 24% each of total sales which was driven by Sefina Residences in Mont’Kiara and Melia Residences in the Southern Region, the Company’s newly launched landed mid-market township development in Gerbang Nusajaya. International sales accounted for 52% of total sales for the current period. Unrecognised revenue as at 30 June 2016 stood at RM4.3 billion as compared to RM3.8 billion recorded in the same period in 2015.
As at year to-date, UEM Sunrise has launched projects with a total Gross Development Value (“GDV”) of approximately RM522.6 million. In the Southern Region, Denai Nusantara was launched early 2016 followed by Melia Residences Phase 1, 2 and 3 in April and May while in the Central Region, Camellia in Serene Heights, Bangi was launched end July. Commenting on the Company’s sales performance, Dato’ Izzaddin Idris, Executive Director of UEM Sunrise said, “Our sales for the six months of 2016 has been encouraging. Despite the softer property market in Johor, Melia Residences received positive response given its strategic location and attractive price point. We originally intended to launch Phase 1 only which has 107 units with GDV of RM66.0 million for 2016 but due to the strong interest, we decided to launch two additional phases, ultimately a total GDV of RM262.8 million with a total of 366 units for 2016. As at mid-August, overall sales inclusive of bookings for Melia Residences is 60%”.
“We are encouraged by the strong interest in Camellia where the double-storey terrace homes are selling at a starting price of RM590,000 per unit with a minimum built up of 2,174 square feet. In the month or so since its launch, sales inclusive of bookings for the 109 units of Camellia’s first phase reached 59% and we are now bringing forward the launch of the second phase. Both Melia Residences and Serene Heights Bangi are expected to contribute positively to our sales for the year.”
On the international front, Dato’ Izzaddin said the Company has decided to postpone the launch of its third project in Melbourne located on St Kilda Road to 2017 in order to revamp the entire development plans to generate a higher GDV compared to the earlier development plans of only refurbishing the existing building. In line with this postponement, UEM Sunrise’s sales target for 2016 has been revised downwards from RM1.5 billion to RM1.0 billion.
On the land disposal to AMOREPACIFIC Corporation, one of the world’s largest cosmetic, personal and healthcare companies, Dato’ Izzaddin said, “We welcome AMOREPACIFIC’s presence in Iskandar Puteri. Their plan to invest approximately USD170 million to develop an integrated centre for research and development, manufacturing and logistics of cosmetics products which is anticipated to create about 500 new jobs in Iskandar Puteri. This bodes well with our strategy to continue promoting catalytic projects in Iskandar Puteri which will result in job creation”.
In terms of its land bank expansion, UEM Sunrise had on 27 May 2016 signed a Joint Land Development Agreement with Telekom Malaysia Berhad for the development of two land parcels measuring 1.69 acres in Kuala Lumpur. In addition, UEM Sunrise also recently completed the acquisition of the remaining 38% stake in Ibarat Duta Sdn Bhd from Melavest Sdn Bhd giving UEM Sunrise 100% ownership in Solaris 3, a much anticipated mixed development project targeted for launch in 2017. Solaris 3 is the parcel of land located between Publika and Masjid Wilayah Persekutuan.