KUALA LUMPUR: Property developer UEM Sunrise Bhd said it is still capable of maintaining its sales pricing strategy this year, despite the hike in construction costs.
Chief executive office Sufian Abdullah said the group is working on its procurement strategy and effective risk management that allow its partners, suppliers, vendors and contractors to assume a considerable amount of risk and production cost management, among others.
“We feel that despite the increase in visible tender pricing, it is still within the tolerance point,’’ he said during a media briefing on the group’s first quarter of 2022 (Q1 2022) performance today.
He said the group is monitoring the dynamics of the economy and global developments that could impact its cost of construction.
Although the property developer is currently experiencing a labour shortage which resulted in some delays, the impact is still tolerable, said Suffian.
Overall, he said the group is still expecting a positive financial year 2022 performance on the back of unbilled sales worth RM2.2 billion and new projects.
UEM Sunrise also remains confident about achieving its sales target of RM1.5 billion and launching projects with a gross development value of RM3.3 billion for this year.
The property developer returned to the black with a net profit of RM19.02 million in Q1 2022 ended March 31, 2022, from a net loss of RM4.32 million in Q1 2021 following a more than 100 per cent jump in operating profits.
Revenue rose by 65 per cent to RM416.45 million from RM252.69 million previously, mainly supported by local property development activities and the sale of 19 industrial plots in phase 3 of the Southern Industrial and Logistics Clusters in Iskandar Puteri, Johor. – Bernama