PETALING JAYA: UEM Sunrise Bhd posted a 5.97% drop in net profit to RM75.23 million for the financial year ended Dec 31, 2023 (FY2023) compared to RM80.54 million in FY2022.

Revenue fell 9.12% to RM1.34 billion in FY2023 from RM1.47 billion a year ago.

In a filing with Bursa Malaysia, UEM Sunrise said the lower full-year revenue was due to receiving higher revenue contribution in FY2022 from the completion of Residensi Solaris Parq in Mont Kiara and higher settlements from its Australian projects.

During the fourth quarter (Q4) of FY2023, net profit rose 33.59% to RM27.34 million from RM20.46 million, while revenue rose 25.51% to RM421.97 million from RM336.22 million mainly due to contributions from ongoing and completed projects in the Central and Southern regions.

UEM Sunrise said it planned to launch projects with a total gross development value (GDV) of RM800 million, with a focus on landed residences, affordably priced high-rise apartments, smaller built-ups, and niche high-end products in prime locations.

Through these planned launches, it is aiming for a sales target of RM1 billion for 2024, it said.

The group also said its performance this year would be supported by the divestment of non-strategic land and non-core assets and to secure the necessary approvals for previously announced land sales in Tapah, Perak and in Iskandar Puteri, Johor.

It said the proposed divestment of its interest in Durban, South Africa, is still ongoing and expected to be completed by end 2024.

“As part of the company’s financial and debt management initiatives and on the back of recent successful capital market issuances, we remain financially firm given our gross and net gearing of 0.61 times and 0.45 times, respectively, as of Dec 31, 2023.

“The gearing ratios reduced from 0.64 times and 0.48 times, respectively, in the last financial year with the cash balances standing healthy at RM1.1 billion as of Dec 31, 2023, whilst unbilled sales of RM2.7 billion will be substantially recognised over the next 18 to 48 months,” it added.

It declared a single-tier tax-exempt dividend of 0.75 sen per share for FY2023, amounting to RM38 million, equivalent to a 50% payout ratio.

Its shares ended 2 sen or 1.9% lower at RM1.04, valuing the group at RM5.26 billion.