KUALA LUMPUR (May 20): UEM Sunrise Bhd (KL:UEMS), the property arm of Khazanah Nasional Bhd’s UEM Group Bhd, kicked off its financial year 2026 with a 20.9% drop in first-quarter net profit mainly due to lower land sales.
Net profit for the three months ended March 31, 2026 (1QFY2026) came in at RM16.2 million, down from RM20.49 million a year earlier, according to a filing with Bursa Malaysia on Wednesday.
UEM Sunrise said the previous corresponding quarter benefited from the divestment of non-strategic land in Iskandar Puteri, Johor. Nevertheless, the group said property development revenue increased 24%, primarily driven by improved sales performance and construction progress from The MINH and The Connaught One in the Central Region, partially offset by lower contributions from Intrika,
Meanwhile, the Southern Region recorded higher contributions from DiReka Square, although this was moderated by lower contributions from Senadi Hills.
As a result, total revenue for the quarter declined 16.8% to RM347.71 million from RM417.63 million in 1QFY2026.
Earnings per share fell to 0.32 sen from 0.4 sen.
The group did not declare any interim dividend for the quarter.
UEM Sunrise, which develops residential, commercial and integrated township projects in Malaysia and overseas, said it has set a sales target of RM1.3 billion and a gross development value launch target of RM2.2 billion for FY2026.
"The group will continue to prioritise disciplined capital allocation, prudent risk management and strong product-market alignment in executing its FY2026 plans, while remaining vigilant to the evolving geopolitical landscape and its downstream effects on construction costs and buyer sentiment," it said.
UEM Sunrise shares slipped 1.5 sen or 2.4% to close at 60.5 sen on Wednesday, giving the group a market capitalisation of RM3.06 billion.