UEM Edgenta Berhad has 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 (RM1.17 billion 1H FY2022).
In announcing its unaudited financial results for 1H FY2023 today (August 29), 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 higher volume of pavement works performed for major expressways and commencement of new contracts secured for Asset Management division.
Revenue growth in Healthcare Support Services division mainly driven by 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 in 1H 2023 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, and that 75% of the new contract wins were contributed from international businesses.
As of 30 June 2023, the Company’s orderbook remained healthy, totalling RM9.6 billion.
During the first half of 2023, the macroeconomic environment continued to face multiple headwinds, including renewed concerns on slowing global economic growth triggered by the escalating geopolitical tensions, prolonged supply chain disruptions and inflationary cost pressures.
Commenting on the latest results, UEM Edgenta’s Managing Director/CEO Syahrunizam Samsudin said, “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 we enhance our product and service propositions to gain market share, both locally and internationally, we will continue to collaborate with leading companies globally to bring to market solutions that provides superior outcomes in managing our stakeholders’ assets. As we expand our businesses globally, we will continue to optimise our delivery models and enhance our operational efficiencies through cost synergies, digitisation and innovation as we institutionalise ESG principles in our work culture and execution of services,” he further added.
