ug官方网站:UEM Sunrise cautiously optimistic of achieving RM1.5bil sales target by end-2022

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UEM Sunrise Bhd chief executive officer Sufian Abdullah

KUALA LUMPUR: UEM Sunrise Bhd is cautiously optimistic of achieving its RM1.5 billion sales target by end-2022.

The developer also expects the anticipated overnight policy rate (OPR) hikes for the remainder of the year to have a very minimal impact on its property sales in the second half of 2022 (2H2022), especially in the mid-market segment where it plans a few launches by year-end.

Chief executive officer Sufian Abdullah said historically, the company had seen how the market responded to previous OPR hikes, which have very little correlation, as demand for good property products, especially in the mid-market segment, still remains.

"We do foresee challenges... but we think the changes in the OPR will have a very minimal impact on home buying activity,” he told a virtual press conference on the company’s financial performance for the second quarter ended June 30, 2022 (Q2 2022) today.

On the RM1.5 billion sales target, Sufian said although the sales in Johor had slowed down due to the state election in Q1 2022, the company expects projects like KAIA Heights in Seri Kembangan and Collingwood, Melbourne to continue to be the main contributors to its sales by end-2022.

"We are still optimistic that towards end-2022, if we cannot fulfil the target, we will be at least be close to that number,” he said.

According to its press release, UEM Sunrise plans to launch the second phase of KAIA Heights in Equine Park, new phases in Serene Heights and proposes to introduce MK 31 in Mont’Kiara in 2H2022.

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The company also plans to launch Aspira Gardens in Gerbang Nusajaya and Senadi Hills in the southern region, as well as a new development in Collingwood, Melbourne, Australia.

Meanwhile, commenting on the development in Taman Connaught, Cheras which has been deferred to next year, Sufian said the deferment was due to the delay in obtaining an Advertising Permit and Developer's Licence (APDL) from the Housing and Local Government Ministry.

"We foresee this to be resolved soon, and the project will obtain the necessary approval sometimes towards the end of Q3 2023, or early Q4 2023,” he said.

On the rising construction material cost, Sufian expects the issue to persist for quite some time, hence, the company had forged firmer partnerships with selected vendors and current contractors to remain resilient in the future.

"We have also changed our design for more efficient material consumption,” he said.

On labour shortages, he said that although it had slowed down construction progress, the impact is still within the company’s tolerance level.

In a filing with Bursa Malaysia yesterday, UEM Sunrise said it had returned to the black with a net profit of RM20.7 million in Q2 2022 from a net loss of RM7.37 million in Q2 2021.

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