KUALA LUMPUR (Aug 19): UEM Sunrise Bhd (KL:UEMS) more than doubled its second-quarter net profit as higher revenue recognition from property developments and a land divestment lifted earnings, while the developer surpassed its full 2026 sales target by end-June.

Net profit for the three months ended June 30, 2026 (2QFY2026) jumped 109% to RM46.85 million from RM22.41 million a year earlier, according to the property developer's Bursa Malaysia filing on Wednesday. Revenue rose 36.9% to RM605.71 million from RM442.42 million over the same period.

The stronger 2Q earnings came mainly from higher revenue recognition across ongoing and completed developments in both the central and southern regions. The quarter also benefited from the divestment of non-strategic land in Iskandar Puteri, Johor, which provided another lift to revenue.

As of June 30, 2026, the group had exceeded its full-year sales target of RM1.3 billion by 13%, following the signing of a capital partnership with Kio Investment Management for the Collingwood built-to-rent development on June 16, which would see Kio invest in the A$315.4 million (RM903.3 million) development.

UEM Sunrise currently has unbilled sales of about RM2.9 billion as at end-June, providing up to three years of future revenue visibility, according to its filings. "Planned launches remain focused on attainable and upgraded products across the Central and Southern regions."

For the six months ended June 30, 2026 (1HFY2026), UEM Sunrise's net profit rose 47% to RM63.05 million from about RM42.90 million a year earlier. Revenue increased about 11% to RM953.42 million from RM860.05 million.

The higher first-half revenue was mainly driven by progress billings and revenue recognition from ongoing developments, together with contributions from completed projects across its central and southern portfolios.  

"The group will remain vigilant to movements in key building materials and their potential impact on development costs and buyer sentiment. Domestic property fundamentals remain broadly resilient, supported by sustained economic activity and infrastructure investment," the group said.

In Johor, the Johor-Singapore Special Economic Zone and the Johor Bahru-Singapore Rapid Transit System Link remain important catalysts for investment, employment creation and longer-term property demand, particularly within Iskandar Puteri, it added.

No interim dividend was declared for the period. The group currently sits on cash and bank balances of about RM1.19 billion at end-June, against total borrowings of RM3.86 billion.

Shares of UEM Sunrise closed 1.5 sen or 2.6% higher at 60 sen on Wednesday, valuing the company at about RM3.01 billion. The counter has gained more than 9% year to date.