UEM Edgenta Berhad (“UEM Edgenta” or the “Company”), the leading Asset Management and Infrastructure Solutions company in the region, has announced its unaudited financial results for the period ending 31 March 2023 (“Q1 FY2023”).
During the first quarter, UEM Edgenta commenced the business year strongly, achieving a revenue growth of 17.2% to RM631.8 million compared to RM539.2 million in the corresponding quarter of the previous year (Q1 FY2022). The company also recorded a 15.9% growth in profit after tax and non- controlling interest (“PATANCI”), amounting to RM10.9 million in Q1 FY2023, up from RM9.4 million in Q1 FY2022.
UEM Edgenta experienced healthy orderbook replenishment during the quarter with new contracts secured totaling RM651 million, representing 50% of total contract wins achieved in FY2022.
International markets accounted for approximately 50% of the Company’s new contracts, demonstrating the continued success of UEM Edgenta’s strategy in expanding its presence in the global markets. In addition, its Healthcare Support division played a crucial role in securing new commercial and Integrated Facilities Management (“IFM”) contracts, contributing 55% to the overall new contract wins and in part driven by strong contract renewals in its Singapore and Taiwan markets. This is a testament to the Company’s commitment to delivering high-quality services, as well as the confidence and trust that clients have in the Company.
In terms of orderbook replenishment, both local and international markets contributed equally to new project wins, with contracts secured in Singapore and Taiwan exhibiting an impressive 96% renewal success rate, particularly in healthcare support services. This serves as a testament to the Company’s commitment to delivering high-quality services and instilling confidence in international clients.
On the domestic front, UEM Edgenta continues to strengthen its presence in the private healthcare sector by extending services to new clients in addition to contract renewals by existing clients. Furthermore, the Company’s investments in sustainability and technology continue to garner traction through Energy Performance Contracting and the IFM contracts secured nationwide by utilizing its tech-driven solution, via Edgenta NXT. The Infrastructure division’s orderbook is enhanced through the renewal of state road maintenance contracts and the award of additional roadworks, entrenching its role in maintaining the critical transport infrastructure assets in Peninsular Malaysia.
Commenting on the results, Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said, “Our dedicated teamwork has propelled us to a strong start in 2023. With a healthy balance sheet featuring a low gross gearing ratio of 0.32 times and a robust net cash position, including bank balances of RM114.9 million, we aim to maintain this growth momentum as we explore new business opportunities.”
“We believe that we are on the right path, remaining agile and innovative to secure a sustainable global UEM Edgenta franchise. As we expand our technology solutions and business footprint, we are actively collaborating with new partners in the highly sought-after smart city solutions and sustainability services, as well as expanding into promising markets in the Middle East,” he added.
“Bridging the gap between present and future service delivery, the Asset and Facilities Management industry is undergoing rapid transformation, moving away from the traditional ‘maintain-repair-restore’ model. Instead, it now emphasizes the preservation of assets and continuous operational optimization of buildings, townships, and cities. This paradigm shift paves the way for innovative technology-based solutions, which we are delivering through Edgenta NXT,” he explained.
Edgenta NXT is commercializing its interoperable digital asset management platform, Asseto, that integrates various technologies such as automation, sensors, robots, and data aggregation, allowing for data-driven decision-making that optimize energy utilization, waste management, and user experience, enhancing efficiency and returns to all stakeholders.
