UEM Edgenta Maintains Growth Momentum With 11% Revenue Increase in the First Nine Months of 2019
Healthcare Support division continues to drive UEM Edgenta’s earnings; contributing 50% towards the Company’s revenue and profit in the first nine months of FY2019.
Full Release: Kuala Lumpur, 22 November 2019 – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company announced its Unaudited Financial Results for the first nine months of FY2019 (“9M FY2019”) here today.

For the period under review, UEM Edgenta continues its year-on-year (“Y-o-Y”) growth with revenue and profit before tax (“PBT”) at RM1.7 billion and RM118.7 million, an increase of 11% and 3% respectively as compared to RM1.5 billion and RM115.3 million in 9M FY2018. Net profit for 9M FY2019 stood at RM85.4 million, against the previous year’s RM83.1 million.

The Healthcare Support division which is under the umbrella of the Company’s Asset Management segment continues to drive UEM Edgenta’s earnings with a recorded 50% contribution in both revenue and PBT for 9M FY2019. The division’s revenue and PBT growth soared 16% on a Y-o-Y basis resulting from new contracts secured. The Company’s Healthcare Support division is presently serving over 300 hospitals in Malaysia, Singapore, Taiwan and India.

In the third quarter of FY2019 (“Q3 FY2019”), revenue and PBT also grew at a similar pace of 11% and 3% against the same quarter in the previous year (“Q3 FY2018”) to RM587.6 million and RM25.9 million, respectively. The quarter under review recorded a net profit of RM17.3 million. All divisions of the Company recorded growth in revenue during the quarter; however, growth in profitability was muted, mainly on the back of external headwinds faced with its infrastructure-related businesses. In particular, the Asset Consultancy division recorded a slight loss of RM0.9 million, while Infrastructure Services’ profitability decreased on the back of increased operational costs.

UEM Edgenta’s balance sheet continues to remain strong with net assets per share at RM1.77 and gross gearing ratio remaining mostly unchanged throughout the year at 0.36x. Return on equity has improved to 10.5% as at 9M FY2019 compared to end FY2018 which was at 9.6%.

“We are delivering our suite of services at a steady pace and intend to maintain it or even improve further amidst the challenging global economic and political climate. Other than that, we are also investing in technology through the recent roll-out of our Enterprise Resource Planning system that will allow us to process data faster, make information more accessible and encourage better decision-making, which will streamline and enhance efficiency of our workforce and operations”, said Dato’ Azmir Merican, Managing Director/Chief Executive Officer of UEM Edgenta Berhad.

Dato’ Azmir went on to say that the Company will continue to remain vigilant to the different challenges faced by its core business segments in the sectors and markets that it is present in and seek new business opportunities and technological solutions to better manage its clients’ asset lifecycles.

In its Asset Management segment, UEM Edgenta’s Healthcare Support division made strides by securing new contracts in Singapore and Taiwan, while Property & Facility Solutions division is also optimistic of the business’ outlook to secure large-scale industrial facilities’ opportunities.

The Company’s Infrastructure Solutions segment, which is primarily represented by its Infrastructure Services division will remain focused to maintain its margins through efficiency-based operations in the highway maintenance business while remaining on the look-out for new opportunities for infrastructure maintenance. Meanwhile the Asset Consultancy business is focused on continuing its works in the Sarawak Coastal Road Network and Second Trunk Roads project which was awarded to OPUS Consultants earlier this year.

UEM Edgenta had secured several major contracts in Q3 FY2019 which include Energy Performance Contracting (“EPC”) works in Malaysia for Hospital Kepala Batas, Penang and Hospital Sultanah Bahiyah, Kedah, as well as Design & Build projects for sewage treatment plants along the North-South Expressway; and in Singapore, Healthcare Support Services for Sengkang General Hospital, Sengkang Community Hospital and SingHealth Polyclinics in Singapore.

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