UEMLand ... Sep10

It will be ready to expand overseas after 2012 when it has a certain number of projects to market.

UEM Land's current projects include development of state administration complexes at Kota Iskandar, Puteri Harbour waterfront, Southern Industrial and Logistics Clusters, Alfiat Healthpark and residences, all in Nusajaya in Johor. The company has 3,400ha of undeveloped land in Nusajaya, targeted to be developed by 2025.

UEM Land is looking at various means of expansion and diversification of location to boost earnings.

It is in various stages of negotiations to secure land at several identified areas in Kuala Lumpur, Selangor, Penang and Sabah. The company is also looking at township development and niche projects and expects to announce several of these deals by the end of 2010.

UEM Land recently branched out to Cyberjaya, Selangor, to develop Symphony Hills, a RM1.1 billion high-end housing project.

UEM Land has RM250 million to spend after it exercised its rights issue in April 2010, which saw RM970 million being raised. Part of the proceeds was used to repay debt and for working capital.

UEM Land will not raise funds for the next three years. It will borrow from banks for new projects.

The group is still working on its headline KPI to achieve 36 per cent revenue growth year-on-year and 6 per cent return on equity.

For its financial year ended December 31 2009, UEM Land posted a 54 per cent jump in net profit to RM115.6 million on RM403.1 million revenue.

Its net profit for the second quarter ended June 30, 2010, (2Q10) jumped an impressive 583% to RM40.34 million from RM5.90 million a year ago in line with higher revenue and gain of RM25.6 million on the disposal of an associate, Touch 'N Go Sdn Bhd to PLUS Expressway Bhd.

Its revenue for the quarter rose 28.1% to RM88 million from RM68.68 million previously due to higher revenue from sales of industrial land in Southern Industrial Logistics Clusters, developed land sales in Puteri Harbour and higher sales of development properties in Nusa Idaman.

Earnings per share was 1.23 sen in 1Q10 versus 0.21 sen in the same quarter last year, while net assets per share was 70 sen.

For the six months ended June 30, 2010 (1H10), UEM Land net profit was RM43.48 million versus RM8.53 million a year ago, on the back of a revenue of RM127.7 million.

The group would continue to launch new residential projects in Nusajaya as well as launch new phases of its existing residential projects in Nusajaya and Cyberjaya in the coming months.