Eupe sees revenue rebound by FY24 amid jump in GDV of projects

• The Kedah-based township developer said the gross development value (GDV) of its projects currently exceeds RM2.8 billion, up from RM1.4 billion in FY20.

PETALING JAYA (Aug 25): Eupe Corporation Bhd said it expects its financial results to rebound by the year ending Feb 29, 2024 (FY24), noting that its current project development pipeline is double pre-pandemic levels.

The Kedah-based township developer said the gross development value (GDV) of its projects currently exceeds RM2.8 billion, up from RM1.4 billion in FY20.

The RM2.8 billion is made up of an estimated GDV of RM2 billion for its Klang Valley projects and another RM850 million for the projects in the northern region of Peninsular Malaysia, the group said.

Eupe managing director Datuk Beh Huck Lee said the group would see the flow-on of the expanded project pipeline reflected in its financial results by FY24.

“Most of the projects that we have, [could not be] completed within one year. We do believe that within 18 months, we should exceed the previous (FY22) revenue,” he told the media after Eupe’s 26th annual general meeting on Thursday (Aug 25).

These projects include Eupe’s third residential project launched in November 2021, Est8@Seputeh, which Beh said has achieved an 85% take-up rate; as well as its fourth project, Helix2@PJSouth, which is to be launched soon.

“We have also secured a new (4.28-acre) land at Belfield in Kuala Lumpur for our biggest project so far. In addition, we bought a large parcel of prime land (53.74 acres) in Sungai Petani, Kedah, (which) will secure our northern property division,” Beh said.

Eupe is planning a mixed residential and commercial development on the Belfield site, with an approximate GDV in excess of RM1 billion. According to Eupe’s bourse filing on July 20, the land was acquired at RM125 million from Cahaya Tinggi Sdn Bhd.

For the Sungai Petani development, with an estimated GDV of RM350 million, Eupe has proposed the concept of a “place-making” hub that integrates residential, commercial and community facilities, and includes more than 800 homes.

Eupe had reported a lower net profit of RM23.4 million for FY22, from RM42.2 million in FY21. Revenue fell to RM223.2 million from RM304 million.

Beh said the pandemic-related delays will continue to have an impact on the group’s results for FY23.

The biggest challenge faced by the group is the labour shortage, he said.

On Eupe’s outlook during the current rising inflation period, Beh said the group is safe as seen by the good sales take-up with good cost-control mechanisms in place.

He said the group’s exposure to the affordable housing segment will be further enhanced by the launch of Helix2 later in 2022.

“There are certain people that are focusing more on affordable housing and they are not launching the product yet. I think this market may improve because people are a lot more careful when buying.

“And if you can give good products within their (customers) price range, you may surprisingly find that the response is good. The challenge is that you have to maintain your cost control,” Beh said.

Eupe’s share price closed one sen or 1.28% lower ar 77 sen on Thursday, valuing the group at RM99 million.