UEM Edgenta Registers Strong Performance Backed by Sustainable Digital Solutions Amidst COVID-19 - News & Announcements

UEM Edgenta Registers Strong Performance Backed by Sustainable Digital Solutions Amidst COVID-19

Posts RM1.6 Billion in Revenue for the First Nine Months of 2021

Summary of the First Nine Months of FY2021 Financial Results

Revenue of RM1.6 billion
Net profit of RM23.1 million
Net cash of RM154.6 million
Cash and bank balances at RM596.2 million
Gross gearing ratio of 0.3 times
Current order book stands at RM11.3 billion, with RM750 million new contracts secured in FY2021 to date.

Full Release: Kuala Lumpur, 25 November – UEM Edgenta Berhad (“UEM Edgenta” or “Company”), the region’s leading Asset Management and Infrastructure Solutions company announced its unaudited financial results for the period of nine months ended 30 September 2021 (“9M FY2021”) here today.

The Company reported a net profit of RM23.1 million in 9M FY2021 on the back of RM1.6 billion revenue, as compared to a net loss of RM34.6 million and revenue of RM1.4 billion respectively for the same period in FY2020. Profit before tax (“PBT”) stood at RM45.3 million in 9M FY2021 from Loss Before Tax of RM11.2 million in 9M FY2020.

Comparing the third quarter of FY2021 (“Q3 FY2021”) with the immediate preceding quarter (“Q2 FY2021”), revenue grew to RM571.9 million, an increase of 6.2% from RM538.6 million in Q2 FY2021, with net profit surging by 38.5% from RM6.3 million to RM8.7 million.

Growth in revenue for both year-on-year (“Y-o-Y”) and quarter-on-quarter (“Q-o-Q”) financial performance is a testament of the Company’s agility and resilience as it pursues its growth strategy with a focus on new products and solutions led by tech, expansion into new geographies and forging regional partnerships. As of 30 September 2021, UEM Edgenta’s balance sheet remains healthy by maintaining a low gearing ratio at 0.3 times.

Managing Director/Chief Executive Officer, Syahrunizam Samsudin commented, “We are heading towards positive turnaround for the Company as we continue to raise the levels of our skill-sets and services to better serve our clients. We are steadfast in strategically positioning UEM Edgenta within the healthcare support solutions industry, as well as the region’s leading infrastructure solutions company, guided by our ‘Edgenta of the Future 2025’ vision.”

“Our sustainable digital solutions, particularly in healthcare support and asset management, will propel UEM Edgenta as a key player in national recovery efforts as the nation gears up towards reinvigorating the economy as we enter the endemic phase of COVID-19,” he added.

Earlier this year, UEM Edgenta launched Edgenta NXT as its first digital ecosystem platform in supporting businesses through digitalisation and connectivity. Edgenta NXT would also allow budding startups and upcoming solution providers to sell their products to connected clients once Edgenta NXT Procure and Edgenta NXT Marketplace operates in the near future.

Syahrunizam also said the regional markets could benefit greatly from UEM Edgenta’s expertise in healthcare support, asset management and digital solutions.

“While we are confident to participate in growth opportunities locally as the Malaysian economy is projected to grow by 5.5% to 6.5% in 2022, bolstered by a gradual reopening of economic and social sectors as well as the resumption of development projects, we are also optimistic to explore regional opportunities to meet strong external demands,” added Syahrunizam.

Throughout the year, UEM Edgenta continued to provide uninterrupted healthcare support services to all public and private hospitals under its care in the region. In Malaysia, UEM Edgenta has been proactively supporting the Government’s COVID-19 recovery efforts, with notable initiatives such as the completion of 12 units of Field Hybrid ICUs in hospitals across the country, as well as the establishment of its Vaccination Centre for Adolescents and Booster Shots housed at the UEM Edgenta’s Learning Centre in Petaling Jaya with over 25,000 individuals having received their vaccination shots there.

Business Performance
For the nine-month period ending 30th September 2021, comparing to its performance in 9M FY2020, the Healthcare Support Services division continued to register strong revenue growth, with 13.5% increase in revenue to RM1.0 billion and PBT of RM65.2 million. The division will continue to deliver on its existing contracts, while diversifying its solutions beyond traditional healthcare offerings to drive the nation’s post-pandemic recovery efforts. On the regional front, the division is actively looking for opportunities to move into higher value-added services in its existing markets in Singapore and Taiwan, while expanding in new high growth markets such as Saudi Arabia and other Gulf Cooperation Countries (“GCC”).

For the Property and Facility Solutions division, revenue and PBT recorded at RM114.8 million and RM9.6 million respectively in 9M FY2021. The division is actively pursuing more projects in high-value commercial as well as industrial based buildings with Smart Facilities Management systems as a key differentiator in its offering and leveraging on its presence in Dubai to further penetrate new markets in the GCC region.

As for the Company’s Infrastructure Services division, revenue recorded at RM400.0 million and PBT at RM20.4 million in 9M FY2021. With the rise in interstate travel seen in Q3 FY2021 following the lifting of travel restrictions, the division is on track to ramp up its operations amidst increasing traffic volume and activities on highways.

UEM Edgenta’s Asset Consultancy division registered a revenue of RM58.5 million and Loss Before Tax of RM14.3 million in 9M FY2021. The revival of infrastructure projects such as the recent launch of four new packages of the Pan Borneo Highway is expected to augur well for the division for the remainder of the year.

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