UEM Sunrise Bhd has cautioned that due to economic uncertainties it may miss its revenue and gross development value (GDV) goal of RM2 billion per year.
This came after the property developers reported a net loss of RM21.94 million a year earlier from a net profit of RM30.09 million in the first quarter (Q1) ended March 31 2020. Group sales dropped 53.3 per cent from previously RM419.26 million to RM195.85 million, EUM Sunrise said in a statement today.
The organization said it was reviewing the targets. UEM Sunrise said the net loss for the quarter was attributed to lower sales and the effects of foreign exchange losses attributed to a weakening of the Australian and South African dollars from 2.87 to 2.59 and from 0.29 to 0.25. It said lower revenues were reported in the domestic segment following the completion of the previous financial year’s Sefina, Almas and Serimbun, cushioned by the Solaris Parq, Aspira ParkHomes and 680 Avenue progression.
The Covid-19 pandemic also affected sales and completion of improvement in March, leading to lower revenues in the quarter.In the second half of 2019, Managing Director and Chief Executive Officer Anwar Syahrin Abdul Ajib said that 90 per cent of the UEM Sunrise ventures launched last year were offered to the sector.
He said the development of most of these ongoing projects was still at the early stages of construction with completion at the earliest in May 2021 in the case of Aspira Square, while the latest tentatively for Residensi AVA was in June 2024.
The company intended to launch the latest phase of Serene Heights Bangi and a new residential development in Iskandar Puteri but this did not materialize as Malaysia implemented the Movement Control Order (MCO) on March 18 as a way to curb Covid-19 ‘s expansion.
He said the company’s priority was to capitalize on the re-introduction of the recently announced Home Ownership Program under Penjana’s economic recovery plan and optimize the program incentives.
Meanwhile, Anwar said so far, its bookings and reservations were close to RM300 million.b The company recently bought another freehold development site on Hoddle Street 21-53, in Melbourne, Collingwood covering 5,390 square metres.