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Summary of Q1 FY2022 Financial Results
- Revenue of RM539.2 million
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Net profit of RM9.4 million
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Normalised net profit of RM10.4 million
-
Net cash at RM121.4 million
- Gross gearing ratio at 0.33 times
Full Release: Kuala Lumpur, 26 May - UEM Edgenta Berhad ("UEM Edgenta" or the "Company"), the region's leading Asset Management and Infrastructure Solutions company, announced its unaudited financial results for the period ended 31 March 2022 ("Q1 FY2022") today.
For the quarter under review, UEM Edgenta registered a revenue growth of 11.5% to RM539.2 million, compared to RM483.6 million in the previous corresponding quarter ("Q1 FY2021"). The Company also posted a normalised net profit growth of 28.4% to RM10.4 million, compared to RM8.1 million in Q1 FY2021.
The Company's robust orderbook stands at RM10.8 billion, providing long-term prospects until 2038. UEM Edgenta continued to gain contracts during the quarter and has secured over RM500 million worth of new contracts, achieving ~40% of FY2022 target orderbook replenishment amounting up to RM1.3 billion. International markets contributed ~60% of these new contracts, a testament to the Company's international market expansion strategy. UEM Edgenta's Healthcare Support division, particularly commercial contracts, continued to anchor ~66% of these new wins.
"It has been a positive quarter for us with continued growth of our topline and bottom line, and healthy orderbook replenishment, supported by market recovery and our diversification strategy. However, we remain cautiously optimistic on the outlook as the positive prospects driven by the relaxation of international travel restrictions and the nation transitioning towards the endemic phase, are countered by various headwinds, namely global inflationary pressures, supply chain disruption, and market volatility. As an organization, we will continue to innovate and remain agile in responding to these challenges," said Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta.
Launched a year ago, Edgenta of the Future 2025 ("EoTF 2025")'s vision is aimed to create a technology enabled solutions company with a focus on healthcare by 2025, through three strategic pillars, namely expand footprint and deepen solutions base, enhance product and technology proposition, and extract value from core businesses. EoTF 2025 has anchored the Company's multi-pronged diversification strategy across multiple geographies, products and services, and will continue to guide the Company in proactively positioning itself to deliver long-term sustainable growth to its stakeholders.
"As we see the increasing importance of Environment, Social and Governance ("ESG") agenda globally, it is becoming clear on how we, as a Company, have the foundational capabilities, products and services to empower sustainability in our business strategy and operations, which in return would enable our clients to achieve their ESG targets," added Syahrunizam.
As for segmental results, under its Asset Management segment - the Healthcare Support division, which presently serves over 300 hospitals in Malaysia, Singapore, Taiwan and India, registered a 13.6% increase in revenue to RM351.6 million, compared to RM309.5 million in Q1 FY2021. Building from our strong orderbook in Singapore and Taiwan, the division recorded a higher net profit of RM21.2 million in Q1 FY2022, compared to RM15.9 million in the same period last year mainly resulting from healthcare support contracts secured in Malaysia, Taiwan, and Singapore. Meanwhile, its Property & Facility Solutions division had a slower start this year and recorded a revenue of RM29.0 million, compared to RM42.6 million in the corresponding quarter in FY2021.
UEM Edgenta's Infrastructure Services division registered a 21.7% increase in revenue to RM133.1 million in Q1 FY2022 compared to RM109.3 million in the previous year, while its Asset Consultancy division, represented by Opus Consultants, recorded a 30.3% increase in revenue to RM25.5 million compared to RM19.6 million in Q1 FY2021. This is mainly due to higher maintenance work and consultancy works performed for expressways, by Infrastructure Services and Asset Consultancy, respectively due to the ease of movement control order imposed by the Government in the current quarter as compared to the corresponding quarter last year.
Backed by a healthy balance sheet with a low gross gearing ratio of 0.33 times and a strong net cash position and bank balances of RM121.4 million, the Company continues to enhance its delivery models in improving operational efficiency and structural cost optimisation in achieving long term competitive advantage and drive long term sustainability, in manoeuvring a continuing challenging business landscape.
For the quarter under review, UEM Edgenta registered a revenue growth of 11.5% to RM539.2 million, compared to RM483.6 million in the previous corresponding quarter ("Q1 FY2021"). The Company also posted a normalised net profit growth of 28.4% to RM10.4 million, compared to RM8.1 million in Q1 FY2021.
The Company's robust orderbook stands at RM10.8 billion, providing long-term prospects until 2038. UEM Edgenta continued to gain contracts during the quarter and has secured over RM500 million worth of new contracts, achieving ~40% of FY2022 target orderbook replenishment amounting up to RM1.3 billion. International markets contributed ~60% of these new contracts, a testament to the Company's international market expansion strategy. UEM Edgenta's Healthcare Support division, particularly commercial contracts, continued to anchor ~66% of these new wins.
"It has been a positive quarter for us with continued growth of our topline and bottom line, and healthy orderbook replenishment, supported by market recovery and our diversification strategy. However, we remain cautiously optimistic on the outlook as the positive prospects driven by the relaxation of international travel restrictions and the nation transitioning towards the endemic phase, are countered by various headwinds, namely global inflationary pressures, supply chain disruption, and market volatility. As an organization, we will continue to innovate and remain agile in responding to these challenges," said Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta.
Launched a year ago, Edgenta of the Future 2025 ("EoTF 2025")'s vision is aimed to create a technology enabled solutions company with a focus on healthcare by 2025, through three strategic pillars, namely expand footprint and deepen solutions base, enhance product and technology proposition, and extract value from core businesses. EoTF 2025 has anchored the Company's multi-pronged diversification strategy across multiple geographies, products and services, and will continue to guide the Company in proactively positioning itself to deliver long-term sustainable growth to its stakeholders.
"As we see the increasing importance of Environment, Social and Governance ("ESG") agenda globally, it is becoming clear on how we, as a Company, have the foundational capabilities, products and services to empower sustainability in our business strategy and operations, which in return would enable our clients to achieve their ESG targets," added Syahrunizam.
As for segmental results, under its Asset Management segment - the Healthcare Support division, which presently serves over 300 hospitals in Malaysia, Singapore, Taiwan and India, registered a 13.6% increase in revenue to RM351.6 million, compared to RM309.5 million in Q1 FY2021. Building from our strong orderbook in Singapore and Taiwan, the division recorded a higher net profit of RM21.2 million in Q1 FY2022, compared to RM15.9 million in the same period last year mainly resulting from healthcare support contracts secured in Malaysia, Taiwan, and Singapore. Meanwhile, its Property & Facility Solutions division had a slower start this year and recorded a revenue of RM29.0 million, compared to RM42.6 million in the corresponding quarter in FY2021.
UEM Edgenta's Infrastructure Services division registered a 21.7% increase in revenue to RM133.1 million in Q1 FY2022 compared to RM109.3 million in the previous year, while its Asset Consultancy division, represented by Opus Consultants, recorded a 30.3% increase in revenue to RM25.5 million compared to RM19.6 million in Q1 FY2021. This is mainly due to higher maintenance work and consultancy works performed for expressways, by Infrastructure Services and Asset Consultancy, respectively due to the ease of movement control order imposed by the Government in the current quarter as compared to the corresponding quarter last year.
Backed by a healthy balance sheet with a low gross gearing ratio of 0.33 times and a strong net cash position and bank balances of RM121.4 million, the Company continues to enhance its delivery models in improving operational efficiency and structural cost optimisation in achieving long term competitive advantage and drive long term sustainability, in manoeuvring a continuing challenging business landscape.
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UEM Edgenta Bhd published this content on 26 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 May 2022 12:20:14 UTC.
