Press Release
 
 
UEM EDGENTA RECORDS 38% JUMP IN YEAR-ON-YEAR PROFIT
04 September 2018

Overseas Wins Drive Expansion Strategy 

KUALA LUMPUR, 4 September 2018 – UEM Edgenta Berhad (“UEM Edgenta” or “Company”) recorded strong financial performance in the first half (“H1 FY18”) of the financial year ending 2018 (“FY2018”), and it expects to sustain this growth momentum for the rest of FY2018 by fulfilling all of the contracts it has secured to-date, acquiring new revenue opportunities both domestically as well as overseas, and further ramping-up its operational efficiency initiatives to improve its margins. 

The Company achieved stronger revenue and higher profitability from its core sectors namely Healthcare, Infrastructure and Real Estate. In H1 FY2018, revenue stood at RM1.007 billion, and profit before tax (“PBT”) registered a strong growth of 38.0% at RM90.2 million versus the same six-month period in 2017 on the back of an 8.8% increase in revenue, buoyed by improvements in operating profit margin. 

“We are optimistic of sustaining our growth momentum as seen over the last two quarters. As at 30 June 2018, the value of our work-in-hand remains strong at RM13.5 billion,” said Managing Director/Chief Executive Officer, Dato’ Azmir Merican. 

There have been some notable wins and in recent months, UEM Edgenta has been awarded contracts worth SGD39.3 million (equivalent to RM117.5 million) for Healthcare portering and housekeeping services at the 1,000-bed Sengkang General Hospital, 333-bed Mount Elizabeth Novena Hospital, 277-bed Ren Ci Community Hospital in Singapore, as well as the 1,800-bed Tri-Service General Hospital and 1,000-bed Far Eastern Memorial Hospital in Taiwan. 

In the Real Estate sector, UEM Edgenta has secured approximately RM47.2 million worth of integrated facilities management as well as energy performance contracts which include among others, Affiniti Medini in Medini Iskandar, Johor; 3 new CIMB buildings in addition to the existing 6 sites across the Klang Valley; Hengyuan Refining (formerly Shell Refining) located in Port Dickson, Negeri Sembilan; Hospital Putrajaya; German-Malaysian Institute in Kajang, Selangor; and Marina Bay Sands as well as the Exam and Assessment Board and Maybank buildings in Singapore. 

“Over and above these new contracts which will be revenue-accretive in 2018, we are also working on securing several other sizeable energy performance contracts for a mix of education and industrial facilities in Malaysia, as well as more healthcare facilities in Singapore and Taiwan as part of our overseas expansion strategy. 

“We have also ramped up our operational efficiency initiatives to further improve our margins. This includes the implementation of Performance-Based Contracting in our Infrastructure business. It will commence second half of 2018 and is set to transform our current input-based delivery model to an outcome-based one, thereby improving cost efficiency and service delivery. In addition, we are putting in place a framework to build Lean capabilities across all our business divisions, introducing innovation programmes, and are always on the look out to identify and implement new technology enablers,” added Dato’ Azmir. 

On the back of its half-year profits, UEM Edgenta declared an interim dividend of 6 sen per share, equivalent to RM49.9 million and representing a payout ratio of 79% on H1 FY18 results. As with the past, UEM Edgenta will continue to reward its shareholders for their support. 

In recognition of its industry leadership, UEM Edgenta was awarded the “Frost & Sullivan Malaysia Facilities Management Company of the Year” Award for the third consecutive year at the 2018 Frost & Sullivan Malaysia Excellence Awards ceremony in June 2018. This award is a testament of UEM Edgenta’s focus on growth, technologies and innovations in 2017, achieving above-industry growth and commendable capability enhancement. 

 
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