UEM Edgenta Reports Robust 16.2% Net Profit Growth and Achieves FY2023 Full-Year Contract Target in Nine Months
KUALA LUMPUR, 28 November – UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the region’s leading Asset Management and Infrastructure Solutions company, today announced a 16.2% increase in net profit to RM28.6 million in the nine months ended 30 September 2023 on the back of a higher revenue of RM2.07 billion (RM1.81 billion 9M FY2022), reflected its resilience and ability to renew and win new contracts from its existing client base as well as new clients and growth markets.

In announcing its unaudited financial results today for the nine-month period under review, the Company reported a 14.3% growth in revenue to RM2.07 billion (RM1.81 billion 9MFY2022) through enhanced technology-enabled solutions, and high-quality service delivery, yielding strong client retention. UEM Edgenta’s current order book stands at RM9.2 billion, out of which 67% is contributed by Infrastructure Services.

As for Q3FY2023, net profit grew by 18.9% to RM5.2 million from RM4.4 million in Q3FY2022 while revenue improved by 11.6% to RM721.1 million driven by effective execution of ongoing contracts by both Singapore and Taiwan Healthcare Support, and Property and Facility Solutions (“PFS”) divisions as well as increased pavement works performed for expressways by Infrastructure Services. At the end of 30 September 2023, the Company’s balance sheet showed a net asset per share of RM1.94, cash and bank balances of RM650.3 million and a gearing ratio of 0.31 times.

In the first nine months of FY2023, UEM Edgenta secured new contracts totalling RM1.6 billion, achieving the Company’s FY2023 full-year target in 9 months. The Company is maintaining a robust pipeline of contract renewals and new wins in its established markets, namely Malaysia, Singapore, Taiwan, Indonesia, and the United Arab Emirates. Integration with the new subsidiary in the Kingdom of Saudi Arabia (“KSA”), MEEM For Facilities Management Company, is on track for the Company to pursue the growth opportunities in KSA.

Commenting on the latest results, UEM Edgenta’s Managing Director/Chief Executive Officer, Syahrunizam Samsudin said: “With technology reshaping every facet of our business, we continue to allocate resources and invest for growth in areas that enable us to differentiate ourselves by being steadfast in optimising our delivery models and elevating our operational efficiency for customers. As we move forward, we remain agile and responsive, leveraging our digital capabilities to adapt to evolving market dynamics and consistently deliver value to our stakeholders.”

The Healthcare Support Division has implemented rigorous resources optimisation initiatives through deployment of leading-edge technology and automated work order management to mitigate margin pressure arising from increased market competition and inflationary forces. It has also expanded its service offerings beyond traditional healthcare support services to cater to a diverse customer base in manufacturing and hospitality sectors, notably in Singapore and Taiwan markets.

The PFS division has also expanded by integrating Smart Building solutions into clients’ tech ecosystem through the utilisation of Asseto, Edgenta's leading cloud-based asset management system, and its partners’ technology capabilities in enabling data-driven decision-making. Its focus on data analytics and real-time monitoring has seamlessly aligned with the Company’s ESG principles while supporting its customers’ sustainability agenda. In the Middle East region, our UAE operation has also expanded its service offerings and secured entry into the Abu Dhabi market by winning its first contract with the Abu Dhabi Equestrian Club.

Underscoring the Company’s commitment to its sustainability targets, Opus Consultants has been repositioned to be the leading provider of energy and sustainability solutions to capitalise on the emerging green business opportunities stemming from the National Energy Transition Roadmap and the broader infrastructure and healthcare sectors. On the heels of the Net Zero Launch in September 2023, the RM200 million Zero Capex Fund Programme is ready to be deployed in Sarawak and Peninsular Malaysia by the in-house energy efficiency execution experts, complemented by its partners’ capabilities to provide end-to-end energy and sustainability solutions. At the same Net Zero Launch event, the Company had also set forth a goal to reduce its operational GHG emissions by 26% by 2030 in the medium term and to achieve net-zero emissions by 2050.

In response to the evolving landscape of our industry, we recognise substantial long-term value and opportunities in the area of IT digitalisation as well as the exploration of new markets. As part of our strategic vision, we have committed significant investments in these areas during the current fiscal period. These proactive measures are integral to fortifying our position for sustained growth and resilience in the face of changing market dynamics, ensuring our organisation remains at the forefront of innovation and well-positioned for continued success.

As for the performance outlook for FY2023, Managing Director/Chief Executive Officer Syahrunizam Samsudin said: “Markets remain challenging with the high-cost environment driven by escalating cost of materials and manpower. While we remain cautious for the remainder of the year, we are continuously driving operating efficiencies and optimising our cost structures to be a “fit-for-purpose” organisation to win and retain customers in the domestic and international markets. As we look ahead, to fortify the Company’s market positioning, we are actively pursuing both organic and inorganic investments to accelerate growth and to capture the emerging opportunities timely, ensuring long-term sustainability and value creation for our stakeholders.” he added.


© 2024 UEM Edgenta Berhad 196301000166 (5067-M). All Rights Reserved.
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