Back
UEM Sunrise Records 39% Increase In Property Development Revenue
KUALA LUMPUR, 26 May 2014 – UEM Sunrise Berhad (“UEM Sunrise”) today announced its financial results for the 1st Quarter (“Q1”) ended 31 March 2014 which saw its revenue from property development activities increased by 39% or from RM268 million in Q1 2013 to RM372.8 million in Q1 2014 with 64% of its current year property development revenue contributed by projects in Nusajaya.
Total revenue for the quarter stood at RM401.6 million and profit after tax and minority interest (“PATAMI”) is RM61.5 million compared to RM697.7 million and RM211.1 million, respectively for the corresponding period last year. The lower financials for the quarter is primarily due to the inclusion of the strategic sale of several parcels of land in Puteri Harbour worth RM400 million in Q1 2013.
Total sales of RM123 million has been recorded for the quarter while unrecognised revenue as at 31 March 2014 stood at RM3.18 billion.
Commenting on UEM Sunrise’s performance, its Executive Director, Dato’ Izzaddin Idris remained confident on the company’s prospects for 2014. “Although the cooling measures have substantially dampened demand during the first quarter of 2014, we do not expect this to have an immediate impact on our financial performance for FY2014 as the unrecognised revenue of RM3.18 billion as at 31 March 2014 from our ongoing projects will continue to flow into our books as construction progresses. Furthermore, we believe that the current negative sentiment in the market is temporary and demand will pick up again in the second half of 2014.”
Dato’ Izzaddin added that the company is planning for more mid-market residential development in response to the market’s needs in addition to providing more affordable homes, the first batch of which, comprising 351 units was soft-launched in March 2014 in Nusa Bayu.
He further added that “For 2014, we are looking forward to the launch of Serene Heights, our mid- market landed residential development in Bangi targeted for August 2014. We have also started planning for a new mid-market residential project in Gerbang Nusajaya which is in addition to our affordable homes initiative that have been announced on 1 March 2014. The affordable homes and residential developments will further complement and support the initial catalytic projects that have been announced for Gerbang Nusajaya such as the Nusajaya Tech Park joint venture with Ascendas and the Motorsports City joint venture with Fastrack Autosports. These projects form part of our long term strategy for Gerbang Nusajaya to spearhead the next wave of growth for our Nusajaya landbank.”
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 grow 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, quality and project execution to maintain our position as one of the market leaders”.