Higher consultancy, healthcare contribution lift UEM Edgenta's 2Q earnings

Higher consultancy, healthcare contribution lift UEM Edgenta's 2Q earnings
-A +A

KUALA LUMPUR (Aug 22): UEM Edgenta posted a net profit of RM27.37 million in its second quarter ended June 30, 2017 (2QFY17) compared to a net loss of RM8.04 million in the previous year’s corresponding quarter, as its consultancy and healthcare services recorded higher contributions.

This marked the group's 4th consecutive quarterly profit after it fell into losses in 2QFY16.

Revenue for the quarter grew 23.14% to RM858.91 million from RM697.51 million, the group said in a filing with Bursa Malaysia today.

The assets solution provider also declared a single tier interim dividend of 8 sen per ordinary share, payable on Sept 20, 2017.

For the six-month period ended June 30 (1HFY17), the group posted a more than fourfold rise in net profit to RM54.66 million from RM12.45 million a year earlier.

“Excluding the one-off impairment loss of RM68.3 million recognized last year, the year-to-date profit before tax (PBT) is higher by RM15.2 million,” UEM said.

Revenue was up 20.65% to RM1.63 billion from RM1.35 billion, on higher contribution across nearly all its divisions.

The consultancy division recognised a PBT in the period versus a loss before tax in the previous corresponding six months, mainly due to impairment losses previously recognised.

Meanwhile, the healthcare services division saw a higher PBT of RM28.7 million, mainly from the acquisition of Asia Integrated Facility Solutions Ptd Ltd (AIFS).

Its real estate services division also recorded a higher PBT of RM5 million on the acquisition of KFM Holdings Sdn Bhd, which contributed a RM2.4 million rise in PBT from new contracts secured.

The infrastructure services segment was the only segment to record lower year-to-date PBT as it saw lower revenue following the completion of the widening of the fourth lane on the North South Expressway and Bayan Lepas Expressway.

Going forward, UEM Edgenta said it would focus on growing and enhancing its core businesses, primarily healthcare, infrastructure and real estate in key markets of Malaysia, Singapore and Taiwan.

“The company believes it is in a position to deliver positive results and expects to sustain its performance for the remainder of the year,” it said.

UEM Edgenta shares closed 9 sen lower at RM2.50 per share, giving it a market capitalisation of RM2.08 billion.