UEM Sunrise Doubles Profits In 2017 Financial Year
UEM Sunrise Berhad announced on 28 February, 2018 its financial results for the financial year ended 31 December 2017 where total revenue recorded for the year increased to RM2903.4 million, as compared to RM1841.5 million reported for the financial year ended 31 December 2016 – an increase of approximately 58 percent.
Profit after tax and non-controlling interests for the year increased to RM280.1 million, an increase of approximately 90 percent compared to RM147.3 million for FY2016 on the back of strong revenue growth.
Property development activities contributed a total of RM2, 249.4 million, representing 77 percent of total revenue for the year – an improvement of approximately 40 percent compared to the property development revenue in FY2016 of RM1611.5 million.
Property development sales for the year was RM1491.7 million, exceeded by 24 percent than its sales target of RM1.2 billion for 2017, contributed mainly from its inventory monetisation initatives, the newly launched Solaris Parq Residences in Dutamas, followed by the company’s latest overseas venture, Mayfair in Melbourne. The company also exceeded its 2017’s Gross Development Value (“GDV”) target of RM1.7 billion with a total GDV of approximately RM2.0 billion launched for the year.
UEM Sunrise is proposing a first and final single-tier dividend of 1.0 sen per ordinary share of RM0.50 each for the financial year ended 31 December 2017. Commenting on the financial results, Anwar Syahrin Abdul Ajib, Managing Director/ Chief Executive Officer of UEM Sunrise said, “We are very pleased with our performance as we achieved record-high revenue results for FY2017 since the Company was listed in 2008. In particular, property development revenue contributed significantly to the Group revenue, charting its highest contribution driven by strong construction progress locally and internationally.”
Touching on the Company’s deliverables for 2018, he said, “We expect to complete Estuari Gardens and Denai Nusantara both in Iskandar Puteri by the second quarter of 2018. Renovations and fitting works for the 4-star Hyatt House hotel in Arcoris Mont’Kiara are progressing well with anticipation to commence operations at the end of the second quarter of 2018. In Melbourne, the first deck of our maiden project, Aurora Melbourne Central comprising 210 units from level 10 to 32, with a GDV of AUD133 million, is expected to be completed in the second half of 2018 while Conservatory, with a GDV of AUD320 million, is also on track to its completion by this year. We hope to deliver all 446 units of Conservatory to our buyers before the end of 2018.”
“We will also continue to drive the overall vibrancy of our projects in Iskandar Puteri. Besides rejuvenating waterfront development Puteri Harbour, in January this year we appointed Atkins, a world-class master planner for the development of an International Land Use Master Planning for Gerbang Nusajaya’s Transit Oriented Development (“TOD”) for the lands surrounding the Iskandar Puteri High-Speed Rail station in Gerbang Nusajaya. This will be the next growth catalyst for Iskandar Puteri. The potential spill-over benefit is immense, and we hope it will enhance the economic and social potential of Iskandar Puteri and Iskandar Malaysia as a whole.”
The Company plans to remain prudent in its targets for 2018 despite exceeding its 2017’s sales target. For 2018, UEM Sunrise’s sales target remains at RM1.2 billion.
