KUALA LUMPUR (Aug 25): UEM Edgenta’s net profit in the second quarter ended June 30, 2022 surged 77.14% to RM10.86 million, from RM6.13 million in the same period last year, on improved contribution by both its infrastructure solutions and asset management divisions.

Earnings per share rose to 1.31 sen from 0.74 sen previously, its bourse filing showed.

Quarterly revenue grew 16.54% to RM627.68 million from RM538.6 million in the same period a year ago.  

For the first six-month period, UEM Edgenta’s cumulative net profit rose 58% to RM20.27 million from RM12.83 million as revenue climbed 14.16% to RM1.17 billion from RM1.02 billion.

Revenue from the group’s infrastructure solutions division rose by RM93.4 million year-on-year mainly due to higher maintenance work performed for expressways by its infrastructure services.

This follows the lifting of movement prohibitions by the government after the business was largely impacted by various forms of Movement Control Orders last year.

Meanwhile, UEM Edgenta’s asset management segment's revenue rose by RM58.3 million during the first half mainly contributed by the increase in its healthcare support division, resulting from contracts secured in Malaysia, Taiwan and Singapore.

The increase in revenue by the healthcare support division was mitigated by lower revenue generated by property and facility solutions division, due to fewer ongoing contracts in the current period.

In a separate statement, UEM Edgenta managing director and chief executive officer Syahrunizam Samsudin said the group’s orderbook stands at RM10.5 billion and has continued to win new contracts in the first half of the year.

International markets and technology-enabled contracts continue to lead the contract wins, both contributing about 70% of these new contracts, affirming the group’s international market expansion and becoming a technology-enabled solutions company.

Looking ahead, UEM Edgenta remains cautiously optimistic  considering all the uncertainties brought about by the global economic slowdown, inflationary pressures, ongoing disruption in supply chain, conflicts in Europe, the recent China-Taiwan tensions and increase in minimum wage in Malaysia.

“The company shall remain vigilant and prudent in managing operating costs while we continue to expand our footprint in high growth markets, namely the Middle East, where we are expecting to secure and leverage on new partnerships in the near future, bringing our portfolio of sustainability programs, digital and tech solutions to the market,” Syahrunizam said.

UEM Edgenta's shares closed up one sen or 0.78% at RM1.30, bringing the asset management and infrastructure solutions group a market capitalisation of RM1.08 billion.