Thursday 28 Mar 2024
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KUALA LUMPUR (May 25): Total asset and facilities management player UEM Edgenta Bhd — formerly Faber Group Bhd — said its net profit for the financial year ended March 31, 2015 (1QFY15) rose 27.5% on-year to RM37.17 million or 4.57 sen per share from RM29.15 million or 3.58 sen per share, on higher revenue.

In its filing to Bursa Malaysia today, its revenue grew 8.1% to RM699.29 million from RM646.85 million, supported by greater contribution from its property development division, which saw its revenue contribution jump 75.7%, followed by infrastructure services (up 39.1%) and integrated facilities management (up 5.6%).

“The infrastructure services division recorded higher revenue by RM53.8 million, mainly due to the higher work progress and certifications for the North-South Expressway fourth lane widening and Bayan Lepas Expressway project,” the group said in a filing with Bursa Malaysia this evening.

As for its integrated facilities management division, UEM Edgenta said it recorded higher revenue by RM8.8 million mainly due to higher recognition of variation orders at the government hospitals.

“The property division recorded higher revenue by RM1.7 million mainly due to higher work progress for Chymes@Gurney, Kuala Lumpur,” the group said.

UEM Edgenta added that the higher revenue from the three divisions — property development, infrastructure services and integrated facilities management — has partially offset the lower revenue from its asset consultancy division, which slipped 3.4% to RM338.33 million in 1QFY15 from RM350.16 million a year ago.

UEM Edgenta expects this year’s outlook to be challenging, despite recording a “favourable performance” in 1QFY15.

“The growth in the asset consultancy division will continue to be affected by the ongoing weak economic condition in Australia and prevailing low oil prices affecting the project commencement in the group’s Canada-based subsidiary,” the group said.

UEM Edgenta (fundamental: 2.5; valuation: 1.1) added that for the recently concluded new concession agreement, growth from the hospital support services sector will be affected by the reduction in contribution from Sabah and Sarawak, with effect from 4QFY15.

“The group will continue its efforts to grow the business and to derive synergies from its integration. It is cautiously optimistic of sustaining its performance in 2015,” it said.

The stock has risen 58.9% from RM2.36 on Jan 13 to close at RM3.75 today, giving its market capitalisation of RM3.05 billion. Year-to-date, the stock has appreciated by RM1.205 or 47.37%.

According to The Edge Research, the stock is currently trading at 30.37 price-earnings.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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