UEM Sunrise exceeds launch and sales targets for 2023

KUALA LUMPUR: UEM Sunrise Bhd Property achieved RM1.5bil property sales in the first half of 2023, which puts it on track to exceed its sales target.

“Our sales as of June 30, have amounted to RM1.5bil, with 32% derived from Central comprising The MINH in Mont’Kiara, The Connaught One in Cheras, and Residensi Allevia, while 9% was from Southern, mainly Senadi Hills, Estuari Gardens and Aspira Square, all in Iskandar Puteri,” UEM Sunrise chief executive officer Sufian Abdullah said.

“Our international projects have contributed a significant portion towards secured sales this review period, with the sale of our Collingwood development in Melbourne, Australia, to Greystar Real Estate Partners amounting to A$277.3mil.

“We remain confident that we will be able to maintain a positive earnings position for the quarter under review whilst strengthening the fundamentals and our stakeholders’ confidence in the company.”

Sufian noted that the group is on track as far as its pipeline of new launches worth RM2.5bil to the market.

As of June 30, UEM Sunrise has unbilled sales of RM2.7bil.

In the second quarter ended June 30, UEM Sunrise posted a higher net profit of RM24.7mil, or earnings per share of 0.49 sen against RM20.7mil, or 0.41 sen in the same corresponding quarter last year.

Revenue was marginally lower at RM363.9mil from RM365mil.

In the first half to June 30 (1H23), the group posted a net profit of RM40mil, or 0.79 sen earnings per share on revenue of RM604.7mil.

Its gross profit margin improved to 37% in 1H23 in comparison to 27% in the first half of 2022 (1H 2022), mainly due to the recognition of project cost savings in the first quarter of 2023. Its operating expenses have dipped by 11% compared to 1H22, while its operating profit improved by 17%.

Its inventories were further reduced by 28% to RM146mil as of June 30 compared with RM203mil as of Dec 31, 2022 while its cash balances remained strong at RM1.5bil, a 50% increase from its position of RM1bil billion as of Dec 31, 2022. Its net gearing remained moderate at 0.46x as of 30 June 2023.

UEM Sunrise will continue to focus on its three-phase strategic turnaround plan. Triage is the first part of its three-phase strategic turnaround plan and takes place from 2022 to 2023. This will be

followed by stabilise (2024 to 2025) and sustain (2026 and beyond).

As for the key new launches in 2023, Sufian said: “The launches of our latest development in Mont’Kiara, The MINH in May and our first transit-oriented development in June to the public were met with very warm receptions. With a GDV of RM979mil and RM743mil, respectively, The MINH and The Connaught One contribute to our 2023 goal of achieving RM 2.5bil in GDV launches. Both developments are also the first of their kind in our Happy+ product series, with The MINH under the CLUB Edition while The Connaught One under the RISE Series.”

UEM Sunrise is also targeting to launch its new high-rise development in Kiara Bay in Kepong. Named Residensi ZIG, this upcoming development is slated as its third Happy+ product this year and has a biophilic design concept.

The three-tower development will feature 1,126 residential units with sizes ranging between 42m2 to 140m2 (450 to 1,508 ft2).

“With an estimated GDV of RM646mil, this will be our second RISE series product this year after The Connaught One,” Sufian said.

Meanwhile, UEM Sunrise will continue to launch new phases of its existing developments, mainly double-storey landed homes in Serene Heights, Semenyih as well as further phases in Senadi Hills and Gerbang Nusajaya, both in Iskandar Puteri.