Back

UEM Sunrise Expects Continued Growth In 2014

KUALA LUMPUR, 24 April 2014 – UEM Sunrise Berhad (“UEM Sunrise”), (“formerly known as UEM Land Holdings Berhad”), following its Sixth Annual General Meeting (“6th AGM”) today expressed confidence that it will be able to build on its performance for its financial year ended 31 December 2013 (“FY2013”) to deliver continued growth to its shareholders in the current financial year.

For FY2013, total revenue improved by 26% to RM2.4 billion compared to the financial year ended 31 December 2012 (“FY2012”) revenue of RM1.9 billion while profit after tax and minority interest (“PATAMI”) increased by 29% from RM448.3 million to RM579.1 million in FY2013. Property development sales also increased by 47% to RM3.0 billion in FY2013 from RM2.0 billion in FY2012 and unrecognised revenue as at 31 December 2013 stood at RM3.4 billion compared to RM2.3 billion a year earlier.

Dato’ Izzaddin Idris, Executive Director of UEM Sunrise said that UEM Sunrise’s performance for FY2013 was geared towards sustainability. “While 2014 is widely expected to be a difficult year for the property sector in light of challenging headwinds including the cooling measures implemented by the Government and rising cost of labour and construction materials, our unrecognised revenue of RM3.4 billion as at 31 December 2013, which will be recognised over the next two to three years as physical progress of our development projects continues, will help to cushion the impact on the Company in 2014”.

Dato’ Izzaddin also highlighted several factors that differentiates UEM Sunrise. “Our land bank in Nusajaya is a key strategic advantage as it has been carefully master planned to offer a unique lifestyle with readily available infrastructure and catalyst developments such as Legoland, EduCity, Afiat Healthpark, Kota Iskandar and Puteri Harbour that are not available in other locations in Iskandar Malaysia. Our early entry into Nusajaya also provides us with a price advantage and greater flexibility to cater for more product variety due to our sizable land bank.”

In addition, Dato’ Izzaddin said that UEM Sunrise is also focusing on other key areas to ensure the company’s continued growth. “For 2014, one of our key initiatives is to embrace our own ‘Service DNA’ and to further enhance the company’s focus as a Customer Centric Organisation with the purpose of developing loyal followers, repeat buyers and advocates of our products. We have introduced our strategic service intent – ‘PRInSip’, an acronym for Personalised, Reliable, Innovative and Simple which is currently being internalised amongst all the employees. We are also continuously looking to innovate and improve our processes, systems, and project execution to maintain our position as one of the market leaders in Nusajaya”.

UEM Sunrise has also lined up several projects aimed at the mid-market and affordable homes segment which are targeted for launch in 2014 in line with current market demand. During an event on 1 March 2014, UEM Sunrise pledged to continue its commitment in building affordable housing in Nusajaya, Iskandar Malaysia by pre-launching 351 units located in Nusa Bayu and another 10,000 more affordable housing which will be launched in phases in Gerbang Nusajaya from this year onwards. The Company also expects that Serene Heights, a mid-market residential development located in Bangi, will draw strong interest from buyers when it is introduced to the market towards the middle of 2014.

In line with its vision to become a regional property player, UEM Sunrise has also completed the acquisition of two prime freehold land parcels in the Central Business District (“CBD”) of Melbourne in October 2013. The company plans to redevelop the two sites into premium residential towers with retail components and have appointed two leading architects, COX Architecture and Elenberg Fraser to design the developments on Mackenzie Street and LaTrobe Street respectively.

Dato’ Izzaddin also added that UEM Sunrise is continuing to explore strategic opportunities to expand its presence and land bank. “Our joint venture with the Kuala Lumpur Kepong group which was announced in February 2014 also provides us with a new template for pursuing our expansion plans where we leverage on the value of our existing lands in Nusajaya to open up new opportunities elsewhere.”