PETALING JAYA: UEM Edgenta posted a slightly lower net profit of RM17.3 million for the third quarter ended Sept 30, from RM17.6 million in the previous corresponding quarter, mainly due to a decline in performance across the group’s divisions.
Revenue for the quarter was, however, 11.2% higher at RM587.6 million, from RM528.3 million.
“All divisions of the company recorded growth in revenue during the quarter; however, growth in profitability was muted, mainly on the back of external headwinds faced with its infrastructure-related businesses.
“In particular, the asset consultancy division recorded a slight loss of RM0.9 million, while infrastructure services’ profitability decreased on the back of increased operational costs,” UEM Edgenta said in a statement.
It also noted that its balance sheet remained strong with net assets per share at RM1.77 and gross gearing ratio remaining mostly unchanged throughout the year at 0.36 times.
Return on equity has improved to 10.5% as at 9M FY2019 compared to end FY2018 which was at 9.6%.
On a cumulative basis, UEM Edgenta posted a net profit of RM84.3 million, 4.7% higher than RM80.5 million in the previous corresponding period ended Sept 30, which was contributed by higher revenues from its asset management ad infrastructure solutions divisions.
Revenue for the nine month period stood 10.7% higher at RM1.7 billion, from RM1.54 billion a year ago.
“The healthcare support division which is under the umbrella of the company’s asset management segment continues to drive UEM Edgenta’s earnings with a recorded 50% contribution in both revenue and PBT for 9M FY2019.
“The division’s revenue and PBT growth soared 16% on a Y-o-Y basis resulting from new contracts secured. The company’s healthcare support division is presently serving over 300 hospitals in Malaysia, Singapore, Taiwan and India,” the company said.
Moving ahead, UEM Edgenta managing director and CEO Datuk Azmir Merican said the company was aiming to maintain or even improve the delivery of its suite of services amid the challenging global economic and political climate.
“Other than that, we are also investing in technology through the recent roll-out of our Enterprise Resource Planning system that will allow us to process data faster, make information more accessible and encourage better decision-making, which will streamline and enhance the efficiency of our workforce and operations,” he said.
He added that the company will continue to remain vigilant to the different challenges faced by its core business segments in the sectors and markets that it is present in and seek new business opportunities and technological solutions to better manage its clients’ asset life cycles.
