From a retail IPO price of RM2.52 just over 2 months ago, UOA development share price has fallen 42% to close at RM1.47 yesterday, while touching a historical low of RM1.40. A set of promising FY11Q2 financial results do not seem to offset the selling pressure resulting from the gloomy global economy outlook.
Kuala Lumpur, 25 August 2011 - UOA Development Bhd on 23 August 2011 announced its financial results for the second quarter ended 30 June 2011.
For the quarter under review, UOA recorded positive growth in revenue at RM173.33 million, marking an 18.9% quarter-on-quarter (QoQ) increase. Current quarter’s gross profit is 12.1% higher with a gross profit margin of 50.6% for the first half of 2011. Normalised Profit After Tax and Minority Interests (PATAMI) excluding fair value adjustments rose considerably by 44.6% against the preceding quarter from RM42 million to RM60 million.
The results are also reflected by a significant shift in revenue and gross profit contribution from commercial to residential segment. For the first half of this year, UOA recorded strong sales of RM533 million on the back of strong demand for its development properties. The total revenue contribution from the residential segment increased from 25% (over RM36 million) in the first quarter (Q1) of 2011 to 59% (approximately RM101 million) in the second quarter (Q2) of 2011 in line with increasing focus by UOA to meet the growing demand for residential properties in Klang Valley.
UOA maintains a strong balance sheet position with cash and equivalent of RM368.37mil as at 30 June 2011, which together with the low gearing ratio, allows for potential future land acquisition and development.
UOA will continue to actively address the demand for quality commercial and residential properties with the development of its land bank that constitutes a saleable area of over 1.4 million sq m including its flagship project, Bangsar South and other upcoming developments in key locations such as Taman Desa, Sri Petaling, Segambut and Glenmarie that will form a solid basis for its growth over the next five to seven years.
UOA will capitalise on its strong balance sheet and continue to seek opportune and strategic development lands while maintaining a focus on strategic locations within the Greater Kuala Lumpur.
In the pipeline for the remaining part of the year are various UOA’s project launches including Villa Botanica and One@Bukit Ceylon Hotel Suites with a total estimated GDV of RM420 million which are expected to increase the total new sales for 2011.
Analysts are of the opinion that UOA is on track to meet the expectation for 2011 barring any unforeseen circumstances.