KUALA LUMPUR (May 27): UOA Development Bhd saw its net profit jump 75.8% to RM78.48 million or 5.48 sen per share for the first quarter ended March 31, 2015 (1QFY15) from RM44.65 million or 3.33 sen per share a year ago, on progressive recognition of the group’s on-going development projects.

Revenue also jumped 79.3% to RM313.7 million against RM174.99 million last year.

“The group’s revenue and profit attributable to the company for the quarter under review were mainly derived from the progressive recognition of the group’s on-going development projects namely Desa Green, Vertical Office Suites, Scenaria @ North Kiara Hills, South View Serviced Apartments, Southbank Residence and Desa Sentul,” UOA Development said in a filing with Bursa Malaysia today.

Total expenditure for 1QFY15 stood at RM48.1 million, comprising mainly marketing expenses of RM14.5 million and administrative and operating expenses of RM19.6 million.

In a statement today, UOA Development said it recorded year-to-date new property sales of RM146 million with contributions from projects.

“The lower property sales recorded in the quarter under review is primarily due to the absence of new property launches. 

"We expect sales to substantially improve over the next several quarters as our new launches, namely Suria at North Kiara which has a gross development value (GDV) of RM120 million), Kepong land (GDV: RM1.5 billion - an integrated mixed-use development with a new KTM commuter train station), Setapak land (GDV: RM230 million) and Desa Business Suites (GDV: RM300 million) will be progressively released,” it added.

UOA Development said the intended project launches for FY15 will increase to RM2.4 billion in GDV from its previously stated value of RM1.7 billion.

“The increase is attributable to the upcoming project in Kepong where some of the subsequent phases are being brought forward,” it said.

It added that the sale of Southbank Residence, Scenaria @ North Kiara Hills and Desa Sentul will continue to contribute to 2015 property sales. The total unbilled sales as at March 31, 2015 stood at RM1.7 billion.

“The group will continue its focus on development in Greater Kuala Lumpur and source for strategic development lands that meet the criteria,” it added.

UOA Development (fundamental: 3; valuation: 1.8) shares closed up 1.35% at RM2.25 today, bringing a market capitalisation of RM3.22 billion.

(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.)