UEM Edgenta’s Strong Revenue Growth Boost Net Profit to RM45.7million in FY2022: Declares 4 Sen Dividend
Summary of FY2022 Financial Results
    Revenue of RM2.5 billion
    Net profit of RM45.7 million
    Dividend payout of a single-tier interim dividend at 4 sen per share, translating into dividend yield of 4.2%
    • Strong net cash at RM247.9 million
    Contract wins in FY2022 stood at RM1.36 billion – 30% growth year-on-year driven by International & Healthcare businesses.

KUALA LUMPUR, 28 February – UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the region’s leading Asset Management and Infrastructure Solutions company, reported a higher net profit of RM45.7 million for the financial year ended 31 December 2022 (“FY2022”), compared to RM43.4 million in the previous year (“FY2021”) and for the Company to stay on course to declare a higher single-tier interim dividend of 4 sen per ordinary share for FY2022, providing 4.2% dividend yield to shareholders (against 27 Feb 2023 last traded share price) (FY2021:3 sen).

On the back of its strong contract wins and international growth strategy, the Company’s revenue increased by 10.1% to RM2.5 billion from RM2.3 billion previously. Normalised net profit in FY2022 expanded to RM62.9 million as compared to RM57.3 million in FY2021.

For the quarter under review (“Q4 FY2022”), the Company recorded a net profit of RM21.0 million on the back of RM710.5 million in revenue compared to a net profit of RM4.4 million and a revenue of RM646.2 million in the previous preceding quarter (“Q3 FY2022”).

Commenting on the results, Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said the Company’s top line or revenue growth in the year under review was at all-time high, surpassing even pre-Covid levels, while the strong bottom line reinforces the Company’s business and financial resilience, despite the external headwinds faced, such as wages concerns, global inflation and supply chain disruptions.

“This reflects strong growth momentum from the execution of our Edgenta of the Future 2025 (“EoTF 2025”) strategy as we strengthened our international presence through technology & sustainability- driven capabilities as we transition to become an international tech-enabled Integrated Facilities Management Service provider.

“Backed by our quality service delivery and robust in-house tech capability, we recorded strong orderbook wins of RM1.36 billion for 2022, an increase of 30% from the previous year. With 62% of new wins coming from international markets and more than 60% were new healthcare contracts, we continue to harness our strong market position in the existing operating markets while capturing market share in the high growth markets,” he said.

The Healthcare Support Services (“HSS”) division continued to secure new contracts in Malaysia, Taiwan and Singapore, this is a testament to our credibility in supporting the healthcare sectors in these countries while expanding into integrated healthcare solutions offerings such as Replacement Through Maintenance services and diversifying its clientele in adjacent sectors, such as semiconductors and hospitality.

“UEM Edgenta’s international business expansion will be further accelerated this year, in the areas of Integrated Facilities Management and deployment of our SaaS platform solution. Our portfolio and financial profile will be further enhanced through reinvestments into new growth markets, products and technology in growth areas in the Gulf Cooperation Council (GCC) countries, particularly in the Kingdom of Saudi Arabia (KSA)” said Syahrunizam.

On 2023 outlook, the Company continues to expand into international markets where demand for quality tech-enabled services are growing while maintaining and servicing its long-term portfolios in Malaysia. Growth strategy is being executed through multi-pronged approach, leveraging on inorganic growth opportunities and collaborative partnerships with the Company’s strategic partners, supported by the Company’s strong financial position.

“While we manage macro-economic headwinds, our Company continues to build upon the strong fundamentals it possesses and strengthen its readiness towards building a global Edgenta franchise. Backed by our EoTF25 strategy to fuel growth from our tech-based transformation, expanding our business footprint internationally is the way forward as UEM Edgenta is moving up the value chain in existing and new markets in the areas of smart facilities management and integrated healthcare solutions,” he added.

The immediate focus for 2023 will be leveraging on UEM Edgenta’s technological advancements in key areas such as consultancy, procurement & construction planning, operations & maintenance, as well as optimisation, rehabilitation and upgrades, putting the Company in a prime position to benefit from the fast-growing economic regions.

“We expect our plans to be fulfilled as we are pleased with the level of progress that UEM Edgenta has achieved since our concerted strategic efforts move two years ago to export our expertise to key growth areas and by teaming up with the right partners in KSA,” said Syahrunizam.

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