EMU Sunrise 4Q loss widens to RM152.26m on FX loss

KUALA LUMPUR (23 Feb): UEM Sunrise Bhd’s net loss for the fourth quarter ended 31 December 2021 (4QFY21) widened further to RM152.26 million from RM134.66 million at the same period last year (4QFY20) due to currency losses.

In a filing from Bursa Malaysia on Wednesday (February 23rd), the property developer said its quarterly revenue fell 18.85% to RM496.34 million from RM611.64 million in 4QFY20.

For the full year ended 31 December (FY21), the group reported a reduced net loss to RM214.33m from RM277.28m in the prior year (FY20) due to improved expenses operating.

Annual revenue, on the other hand, jumped 6.6% to RM1.21 billion from RM1.14 billion, supported by higher construction progress and billings mainly from Residensi Solaris Parq in Dutamas, Aspira ParkHomes in Gerbang Nusajaya, Iskandar Puteri, Serene Heights Bangi and Kiara Kasih in Mont’ Kiara.

On a quarterly basis, the group’s net loss swelled in 4QFY21 from a net loss of RM50.38 million in the prior quarter (3QFY21) while revenue declined from the RM213.04 million reported in 3QFY21.

Commenting on the group’s financial performance, UEM Sunrise CEO Sufian Abdullah said the circumstances surrounding the pandemic over the past two years have impacted its operations and the way it conducts business.

“UEM Sunrise was progressing in terms of recovery and reducing its losses in the first half of 2021 compared to the same period in 2020.

“However, the total lockdown imposed on June 1, 2021 has forced the company to halt construction activities, cease shopping complex operations and close retail galleries.

“Our product launches have been delayed resulting in only RM550 million of GDV launching in 2021,” he said in a statement.

Sufian added that the group is happy to have surpassed its target of RM1.2 billion and has set itself a higher target in 2022 of RM1.5 billion, in line with what the group has achieved. last year.

While we anticipate challenges ahead, including the absence of the home ownership campaign, rising building material prices and the likelihood of higher interest rates, we believe home sales in general remain strong based on our current sales bookings and the type of products we intend to launch this year.

“Improvements in buying sentiment are expected this year, bolstering property sales as buyers continue to seek properties taking advantage of current house prices and low interest rates while they still last. “

Shares of UEM Sunrise ended five sen or 1.43% up at 35.5 sen on Wednesday, giving it a market capitalization of RM1.79 billion.

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