Property
UEM Sunrise keeps its eye on target
Joseph Wong | 08 Jun 2018 00:30
PROPERTY developer UEM Sunrise Bhd is on a roll. Not only did the company exceed its 2017 sales target of RM1.2 bil by RM300 mil, it also doubled its net profit after tax from RM147.3 mil to RM290.1 mil.

Moreover, the company is all geared up for better results given that phase one of its 92-storey Aurora Melbourne in Melbourne, Australia, which has a gross development value (GDV) of RM2.4 bil, will be completed at year-end.

UEM Sunrise managing director and CEO Anwar Syahrin Abdul Ajib notes that the company adopts the Malaysian Financial Reports Standard 15 (MFRS 15), which only allows revenue recognition for its international projects upon their completion.

“As phase one is to be completed at the end of this year, we will be able to recognise the revenue from Aurora Melbourne,” he says. “The first 32 storeys will be handed over to the buyers and we will be able to recognise this revenue.”

Anwar points out that UEM Sunrise’s overseas projects are funded by loans which have pushed up the company’s borrowings and net gearing ratio over the last few years.

In fact, CIMB Equities Research notes that the company’s net gearing ratio increased to 48% in April from 44% as of end-2017.

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