PETALING JAYA: UEM Edgenta Bhd, the region’s leading asset management and infrastructure solutions company, saw a 59.3% drop in net profit to RM4.4 million in the third quarter ended Sept 30 (Q3 FY2022) from RM10.8 million a year ago.
The drop was primarily due to a one-off provision of impairment loss on inventories and the cost escalation in its business operations, said UEM Edgenta, a subsidiary of UEM Group, in a press release today.
In terms of revenue, revenue grew by 3% or RM18.5 million to RM646.2 million in Q3 FY2022 compared to the preceding quarter (Q2). For the first nine months, revenue grew to RM1.8 billion from RM1.6 billion in the corresponding period last year.
On a nine-month basis (9M FY2022), it posted a net profit of RM24.6 million, which is 13.7% higher than the same period last year.
For 9M FY2022, profit before tax stood at RM55.3 million, 22.1% higher than RM45.3 million recorded in the same period last year.
After a strong first half of FY2022, growth momentum for Q3 was moderated by the intensifying inflationary pressure and supply chain disruptions.
In a filing with Bursa Malaysia, the company said the war in Ukraine and zero-Covid policy in China has severely impacted the global supply chain and heightened the inflationary pressure.
“This has resulted in rising interest rates and ultimately mediated global growth. Similarly, UEM Edgenta and its subsidiaries are not spared from these global challenges and anticipated these to continue for the rest of the year,” it added.
Growth in revenue year-on-year was mainly driven by higher revenue generated from the healthcare support services division. This was through expansion into integrated healthcare solution offerings in Malaysia as well as extending services to Singapore and Taiwan, namely, the hospitality and semiconductor sectors.
Growth was also seen in the infrastructure solutions business, driven by higher volume of maintenance works performed following the lifting of the movement control order (MCO) and improvement in traffic volume in major expressways.
As of Sept 30, UEM Edgenta’s balance sheet remains healthy by maintaining a low gearing ratio at 0.3 times. Its order book remains strong at RM10.1 billion.
For the first nine months of FY2022, the company secured new contract wins of approximately RM972 million, with 70% of the new wins being contributed from its international businesses in line with the group’s international expansion strategy.
The reopening of international borders on April 1 and the full resumption of economic activities have paved the way towards positive growth momentum.
“The improved sentiment was, however, met with macroeconomic and inflationary headwinds which contributed to cost escalation across all sectors globally.”
UEM Edgenta MD and CEO Syahrunizam Samsudin said despite the macroeconomic headwinds and operational challenges, it will continue to strengthen its readiness through structural cost optimisation and operational efficiency strategies towards building a global, technology-enabled integrated facilities management company.
At 4.30pm, its share price was flat at RM1.06, giving the company a market capitalisation of RM881.5 million.
