UOA records a strong second quarter

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MAINTAINING STANDARDS: UOA will capitalise on its strong balance sheet and continue to seek opportune and strategic developments lands while maintaining a focus on strategic locations within the Greater Kuala Lumpur.

KUCHING: UOA Development Bhd (UOA) recorded positive growth in revenue at RM173.33 million, marking an 18.9 per cent quarter-on-quarter (q-o-q) increase for the second quarter ended June 30, 2011.

In its press release, UOA current quarter’s gross profit was 12.1 per cent higher with a gross profit margin of 50.6 per cent for the first half of 2011.

Normalised profit after tax and minority interests rose considerably by 44.6 per cent against the preceding quarter from RM42 million to RM60 million.

The results were also reflected by a significant shift in revenue and gross profit contribution from commercial to residential segment. For the first half of this year, UOA recorded strong sales of RM533 million on the back of strong demand for its development properties.

The total revenue contribution from the residential segment increased from 25 per cent (over RM36 million) in the first quarter of 2011 (1Q11) to 59 per cent (approximately RM101 million in the 2Q11 in line with increasing focus by UOA to meet the growing demand for residential properties in Klang Valley.

UOA maintained a strong balance sheet position with cash and equivalent of RM368.37 as at June 30, which together with the low gearing ratio, allows for the potential future land acquisition and development.

UOA would continue to actively address the demand for quality commercial and residential properties with the development of its land bank that constitutes a saleable area of over 1.4 million square metres including its flagship project, Bangsar South and other upcoming developments in key locations that would form a solid basis for its growth over the next five to seven years.

It also noted that UOA would capitalise on its strong balance sheet and continue to seek opportune and strategic developments lands while maintaining a focus on strategic locations within the Greater Kuala Lumpur.

In the pipeline for the remaining part of the year were various UOA’s project launches including Villa Botanica and One@Bukit Ceylon Hotel Suites with a total estimated gross development value of RM420 million which were expected to increase the total new sales for 2011.

Analysts were of the opinion that UOA was on track to meet the expectation for 2011 barring any unforeseen circumstances.