KUCHING: UOA Development Bhd’s (UOA Development) earnings for the second quarter of 2016 (2Q16) jumped by 80 per cent year-on-year (y-o-y) to RM124.23 million from RM68.93 million recorded in 2Q15.
The Kuala Lumpur-based property developer in its accounts notes said the goup’s improved earnings was attributed to better profit margin achieved in 2Q16.
UOA Development said its 2Q16 gross profit improved by 43 per cent as compared with the corresponding quarter in the preceding year.
Nonetheless, the company noted that 2Q16 revenue decreased by 9.5 per cent y-o-y to RM294.81 million from RM325.71 million generated in 2Q15.
The group’s revenue and net profit for 2Q16 were derived from the progressive recognition of the group’s on-going development projects.
These include the Desa Green Serviced Apartments, Scenaria @ North Kiara Hills, South View Serviced Apartments, Southbank Residence, Sentul Village and The Vertical Office Suites and Corporate Towers.
For the first half of 2016 (1H16) ended June 2016, the group’s net profit gained by 49 per cent y-o-y to RM220.30 million but revenue declined by 22 per cent y-o-y to RM495.98 million.
The property developer’s total property sales for the first half of financial year 2016 (1HFY16) was approximately RM611.9 million.
UOA Development noted its integrated commercial and residential development, the United Point Residence in Kepong, Kuala Lumpur was launched during the second quarter ended June 30.
New property sales in the second quarter was mainly derived from projects launched in the current financial year, namely its United Point Residence and Danau Kota Suite Apartment.
Apart from the new projects, on-going projects such as South View Serviced Apartment, Vertical Office Suite, Scenaria @ North Kiara Hills and UOA Business Park also contributed to the sales for 2Q16.
Sentul Point (formerly known as Desa Sentul Phase 2), a high rise serviced apartment in Sentul, Kuala Lumpur is slated to be launched in the second half of financial year 2016, and is expected to contribute substantially to the property sales for the remaining part of the financial year 2016 (FY16).
The group’s total unbilled sales as of June 30, 2016 stood at approximately RM1.2 billion.