Highlight UEM Sunrise 1Q net profit drops plunges 71 y-o-y to RM61.5m

by **Cals** Tue 27 May 2014, 03:06

Highlight UEM Sunrise 1Q net profit drops plunges 71 y-o-y to RM61.5m

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 26 May 2014 18:27

KUALA LUMPUR (May 26): UEM Sunrise Bhd’s net profit fell 71% to RM61.5 for its first quarter ended March 31, 2014, from RM211.1 million in the previous year’s corresponding quarter.

Revenue was at RM401.6 million in 1QFY14, down 42% from RM697.7 million in 1QFY13.

“The group recorded lower revenue for the current quarter as compared to preceding year corresponding quarter primarily due to sale of the land in Puteri Harbour to Liberty Bridge Sdn Bhd for RM400 million in Quarter 1, 2013,” said the company in its announcement.

However, excluding the land sale, the company said its revenue increased to RM373 million for the quarter, from RM268 million in the preceding year’s same quarter.

Moving forward, UEM Sunrise said that it is confident of its prospects, despite the challenging market during the first quarter.

“Although the cooling measures have substantially dampened demand during the first quarter of 2014, we do not expect this to have an immediate impact on our financial performance for FY2014 as the unrecognised revenue of RM3.18 billion as at March 31, 2014, from our ongoing projects will continue to flow into our books as construction progresses.

“Furthermore, we believe that the current negative sentiment in the market is temporary and demand will pick up again in the second half of 2014,” said Datuk Izzadin Idris, executive director of UEM Sunrise.

He added that the company is planning for more mid-market residential development, where the first batch included 351 units in Nusa Bayu.

The group expects to complete land transactions with KLK Land Sdn Bhd and Motorsports City this year, and plans to launch several landed developments such as D’Estuary in Nusajaya, Sinaran Hills in Kajang and Serene Heights in Bangi.