KUALA LUMPUR: UEM Edgenta Bhd aims to maintain the strong growth momentum in the second half of this year, driven by the infrastructure and healthcare sectors.
For the first half of the year (1H), the infrastructure and healthcare business segments accounted for 38 per cent and 46 per cent respectively to the company's revenue.
UEM Edgenta managing director and chief executive officer Datuk Azmir Merican said the growth registered in the 1H was also backed up by strong current contracts in hand with an estimated value of RM13.5 billion as of June 30, 2018, with healthcare contributing 29 per cent and infrastructure and consultancy contributing 67 percent.
He said current contracts in hand would keep the company busy in the next five to 10 years.
“Moving forward, revenue growth from our healthcare segment is expected to be driven by securing more contracts from the government and private hospitals.
“We are also working on securing several other sizeable energy performance contracts for a mix of education and industrial facilities in Malaysia, as well as more healthcare facilities in Singapore and Taiwan as part of our overseas expansion strategy,” he told reporters at the company’s 1H financial year 2018 performance briefing here today.
For the 1H ended June 30, 2018, UEM Edgenta’s net profit increased 37.5 per cent to RM65.1 million from RM47.4 million recorded in the same period a year ago.
The company’s revenue during the same period grew 8.8 per cent to RM1.01 billion from RM925.3 billion last year.
On the back of its half-year profits, UEM Edgenta declared an interim dividend of six sen per share, equivalent to RM49.9 million and representing a payout ratio of 79 per cent on H1 2018 results.
Meanwhile, Azmir said the group was ramping up the implementation of Performance-Based Contracting (PBC) in its infrastructure business, commencing 2H 2018.
He said PBC was set to transform the group’s current input-based delivery model to an outcome-based one, hence improving cost efficiency and service delivery.
"The PBC model has been implemented in developed countries and UEM Edgenta now wants to implement it as it seeks to increase cost efficiency and service delivery, generate innovation and strengthening corporate growth.
"Beginning early next year, all new contracts will be PBC-implemented," he said.