KUALA LUMPUR (Aug 30): UEM Sunrise Bhd's second quarter net profit declined 35% on year to RM54.66 million, due to the property developer's one-off items in the previous corresponding quarter.

Current quarter's lower profit margin also affected profit growth, UEM Sunrise told Bursa Malaysia today.

UEM Sunrise said the RM54.66 million net profit in the second quarter ended June 30, 2016 (2QFY16) fell from RM83.91 million. Revenue grew to RM537.81 million, from RM372.32 million a year ago (2QFY15).
 
"The group recorded lower profit before income tax despite higher revenue in the current and cumulative quarter, mainly due to higher other income from dividend distribution from a subsidiary under creditors' voluntary liquidation, recognition of liquidated ascertained damages from a contractor and interest income in the preceding year's corresponding quarter and period.

"Margins are lower in the current period, due to additional rebates and discounts and more affordable product offerings by the group. The lower profit before income tax in the cumulative quarter is also caused by higher finance cost, due to increase in borrowings and lower interest cost qualified for capitalisation," UEM Sunrise said.

UEM Sunrise said 1HFY16 net profit fell to RM57.68 million, from RM137.05 million a year earlier. Revenue rose to RM795.56 million, from RM789.76 million.

Looking ahead, UEM Sunrise said its current projects' unrecognised revenue of RM4.3 billion would support the group's FY16 income, as construction progressed.

"Beyond the current financial year, the potential earnings of the group will continue to be supported by construction progress of the projects in Australia, which have gathered in more than RM3.0 billion sales.

"The recent signing of the Memorandum of Understanding on the High Speed Rail project by the Malaysian and Singaporean Governments serves as a catalyst for the development of Gerbang Nusajaya in Iskandar Puteri," UEM Sunrise said.

Meanwhile, UEM Sunrise said Anwar Syahrin Abdul Ajib would resume his duties as managing director and chief executive officer this Thursday (Sept 1).

In separate statements to the bourse, UEM Sunrise said this followed his leave of absence since April 16 this year.

At 3:44pm today, UEM Sunrise shares were unchanged at RM1.09, for a market value of RM4.99 billion. The stock saw some five million shares traded. — theedgemarkets.com

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