UEM Edgenta Berhad announced a 15.6% increase in net profit to RM23.4 million in the six months ended 30 June 2023 following a higher revenue of RM1.35 billion.
In announcing its unaudited financial results for 1H FY2023 the company said as of Q2 FY2023, net profit grew by 15.7% to RM12.5 million from RM10.8 million in Q2FY2022 while revenue improved by 14.6% to RM719.3 million from RM627.7 million. The double-digit increase in revenue for 1H FY2023 resulted from a higher volume of pavement works performed for major expressways and the commencement of new contracts secured for the Asset Management division. Revenue growth in Healthcare Support Services division is mainly driven by a strong contract renewal rate of ~90% as well as diversification into the adjacencies such as hospitality sector in Singapore and Taiwan. As of 30 June 2023, UEM Edgenta’s financial position remained healthy by maintaining a low gearing ratio at 0.3 times with cash and bank balances of RM607.0 million.
New contracts secured totalled RM922 million, achieving 70% of FY2022’s total new contracts secured. Notably, a substantial 62% of these new wins originated from the Company’s tech-enabled solutions business, underscoring its increasing significance in our portfolio. Of the new contracts, 70% are from its healthcare segment, a testament to the Company’s preeminence in this field; and 75% of the new contract wins were contributed by international
During the first half of 2023, the group said the macroeconomic environment continued to face multiple headwinds, including renewed concerns about slowing global economic growth triggered by escalating geopolitical tensions, prolonged supply chain disruptions, and inflationary cost pressures. Against this backdrop, the Company remains steadfast in its focus on maintaining agility in navigating the business during this uncertain period.
Commenting on the latest results, UEM Edgenta’s Managing Director/Chief Executive Officer Syahrunizam Samsudin said, “Driven by our Edgenta of the Future 2025 (EoTF2025) ambition, we continue to demonstrate strong progress in delivering our technology and sustainability-based solutions that cater to the needs of our stakeholders and that enables the business to differentiate and expand in high-growth markets. These efforts have translated into a good set of results in terms of new contract wins and a solid financial performance in the first half of 2023.”
As of 30 June 2023, the Company’s orderbook remained healthy, totalling RM9.6 billion.
