KUALA LUMPUR: UEM Edgenta Bhd’s first half profits ended June 2019 grew 4.6 per cent to RM68.1 million, thanks to better contribution from its healthcare support business.
UEM Edgenta, a leading asset management and infrastructure solutions company, said this was achieved on a 10.4 per cent increase in revenue to RM1.11 billion.
The company declared an interim dividend of six sen per share, to add to an earlier interim dividend of eight sen per share, for the first six months.
This represents a 4.5 per cent yield on a rolling-12 months basis, based on UEM Edgenta’s closing share price of RM3.10 on August 23.
UEM Edgenta’s asset management segment, which is represented by the healthcare support and property and facility solutions divisions, continues to drive growth in the first half.
Healthcare support recorded 19.7 per cent revenue and 25.9 per cent pre-tax profit increases. This was mainly attributed to new projects secured from its regional operations in Singapore and Taiwan during the period.
On the back of a challenging first half for the infrastructure sector, the company’s infrastructure services division registered a modest 2.2 per cent increase in revenue.
The asset consultancy division, on the other hand, recorded a 1.9 per cent revenue reduction over the same period, mainly due to current projects completing their life cycle.
“Our healthcare support division continues to be our primary mover and underpins the company’s growth. In July 2019, we had secured up to RM540.06 million worth of contracts to provide hospital support services to the Ministry of Health of Singapore. We will continue to explore new business opportunities in the region,” said UEM Edgenta managing director and chief executive officer Datuk Azmir Merican in a statement.
The healthcare support division is well represented in the region with more than 300 hospitals in Malaysia, Singapore, Taiwan and India.