KUALA LUMPUR (Nov 20): UEM Sunrise Bhd, whose third quarter net profit jumped 2.4 times from a year ago, said it is on track to meet its sales target of RM1.2 billion for the current financial year ending Dec 31, 2017.
This is on the back of commendable bookings received for Residensi Solaris Parq, as well as from Dahlia @Serene Heights Bangi, in addition to contribution from its third Australian project, Mayfair at 412 St Kilda Road in Melbourne.
"The total gross development value (GDV) of these projects amounted to RM1.9 billion, exceeding the group's targeted GDV of RM1.7 billion for 2017," it said in a filing with Bursa Malaysia today.
The group saw its net profit for the third quarter ended Sept 30, 2017 (3QFY17) increase to RM86.6 million from RM36.33 million a year ago, on higher contribution from its international projects. Earnings per share also rose to 1.91 sen from 0.8 sen in 3QFY16.
Quarterly revenue grew 69.9% to RM715.77 million in 3QFY17 from RM421.25 million in 3QFY16, driven by the good progress from its international projects namely Aurora and Conservatory in Melbourne, Australia, and local projects mainly from Almas and Melia in the southern region, as well as the sale of completed units from the inventory monetisation campaign.
For the cumulative nine months (9MFY17), UEM Sunrise saw its net profit surged 2.6 times to RM242.43 million from RM94.01 million in 9MFY16, while revenue climbed 77.1% to RM2.16 billion from RM1.22 billion.
On prospects for the rest of FY17, the group expects to continue with the current performance, supported by the expected completion of Residensi 22 in Mont'Kiara and higher completion progress of the international projects in addition to all the other factors outlined above.
The group's unrecognised revenue stood at RM2.9 billion as at Sept 30, 2017.
UEM Sunrise also said the group recognises the challenges in the property sector as highlighted in the Bank Negara Malaysia Quarterly Bulletin for the third quarter of 2017, and has and will continue to address those challenges by reviewing and consolidating the group's products in response to the shift in the market.
"In addition, the group will continue its asset monetisation strategy through divestment of the group's non-core assets to provide it with additional capital resources to secure strategic land banks in the central region," it added.
In a separate statement today, UEM Sunrise said property development activities contributed 74% of total revenue for 9MFY17.
"Revenue from land disposal contributed about 23% from the total revenue mainly from the land disposal in Richmond, Canada, which was completed at the end of September 2017," it added.
Property development sales for 9MFY17 registered RM671.1 million, 46% of which was contributed by the southern region mainly from Estuari Gardens, Melia Residences and Almãs in Puteri Harbour, Johor, while 27% each came from the central region and international projects.
Its managing director and chief executive officer Anwar Syahrin Abdul Ajib said it is confident that Aurora Melbourne Central is on track to meet the first delivery of the apartment units in the fourth quarter of 2018, while the second and third deliveries are expected to be in the second quarter and fourth quarter of 2019 respectively.
"Conservatory on the other hand, is expected to be delivered in 2019," he added.
On the disposal of over 160 acres of its land in Iskandar Puteri to Country View Bhd, Anwar said UEM Sunrise remains committed and will continue to be one of the main property players in Iskandar Malaysia.
"This timely disposal allows us to explore new opportunities in the central region. We want to expand our brand and emulate the successes of our projects in Mont'Kiara and Dutamas.
"The proceeds from this land disposal is expected to be received in the third quarter of 2018," added Anwar.
UEM Sunrise shares rose one sen or 0.95% to close at RM1.06 today, giving it a market capitalisation of RM4.81 billion.