KUALA LUMPUR (May 28): Real estate developer UEM Sunrise Bhd (KL:UEMS) said on Tuesday its first-quarter net profit nearly halved from a year earlier as sales fell while operating expenses rose.
Net profit for the three months ended March 31, 2024 (1QFY2024) was RM8.18 million compared to RM15.35 million over the same period in the prior year, UEM Sunrise said in an exchange filing. Earnings per share decreased to 0.16 sen from 0.30 sen.
Revenue for the quarter slipped 6.57% year-on-year to RM224.96 million from RM240.78 million. The company also did not declare any dividends for the quarter under review.
UEM Sunrise reiterated its target to launch new projects totalling RM800 million in gross development value and priced between RM500,000 and RM1 million per unit throughout 2024.
Additionally, UEM Sunrise will “prioritise enhancing the sales trajectory of Symphony Hills and Serene Heights through the introduction of new phases”, said chief executive officer Sufian Abdullah. The company also has “a clear inventory reduction plan” to deliver on its sales target of RM1 billion for FY2024, he said.
UEM Sunrise’s total sales grew 38% to RM233 million in the quarter from RM168 million due to solid demand for properties priced between RM500,000 and RM1 million per unit in both the central and southern regions.
“We are [also] excited about our future projects in Iskandar Malaysia, Johor, as we expand into the industrial programme, as well as introducing a variety of residential and commercial offerings,” Sufian said.
New projects lined up for the coming quarters in the southern region include the Happy+ NEST and CLUB Editions, the Aspira Hills series, the Estuari series and the first commercial project DiReka Square in LamanDiReka, the company said.
“Leveraging on the strategic location of Gerbang Nusajaya as a gateway between Iskandar Puteri and Singapore, we are confident on bringing more growth catalysts and partnerships to bolster long-term growth,” Sufian added.
At Tuesday’s closing bell, shares of UEM Sunrise were two sen or 1.71% lower at RM1.15, giving it a market capitalisation of RM5.82 billion ahead of the results announcement. Year-to-date, the counter has risen by over 36%.