UOA Development Bhd's Laurel residence, The Goodwood residence, and United Point Residence accounted for the majority of its total new property sales in 2022, which nearly doubled from the year before to reach roughly RM638.2 million.
About RM203.4 million in unbilled sales were still outstanding as of the end of 2022, compared to RM181.1 million in the third quarter (3QFY22).
According to RHB Research Institute, UOA Development has a promising launch pipeline for 2023, including the much anticipated Bamboo Hill Residence at Jalan Ipoh in Kuala Lumpur.
"A number of new projects will be rolled out this year, as management is more optimistic with the market outlook. Net cash of RM2.16 billion is awaiting deployment, as soon as strategic investment opportunities arise.
"Full-year property sales hit RM638.2 million (+87 per cent year on year) and we expect this year's sales to be at RM700 million to RM800 million," said the research firm's senior analyst Loong Kok Wen.
The first project to be launched in 2023 will be Aster Hill, with a gross development value (GDV) of RM480 million.
The company will also debut its Vertical Office, which is located next to Vertical Corporate Tower, in light of the rising demand for office space in Bangsar South.
According to Loong, the Vertical Office development has a GDV of RM1.3 billion, of which around one-third (small units of strata offices) is intended for sale and the remaining two-thirds would be preserved as an investment property.
She said that the much-anticipated debut of Bamboo Hill Residence will occur in the third quarter of this year.
"While management has yet to fix the pricing, we expect an average selling price of RM600 to RM700 per square ft for the area. We understand that the residential blocks will be located near the MRT station. The current F&B pavilions there are gaining good traction that should help to garner strong demand for the properties," she said.
The research house has raised its FY2023/FY2024 earnings forecasts by four to six per cent given the active launch pipeline.
UOA Development posted a 46 per cent year-on-year drop in net profit for the fourth quarter that ended Dec 31, 2022 (4QFY2022), owing to lower progressive recognition for ongoing development projects.
Net profit fell to RM53.06 million for 4QFY2022, from RM98.86 million a year ago, while revenue dropped 17.5 per cent to RM112.52 million, from RM136.45 million over the same period, it said in a filing with the stock exchange on Wednesday (Feb 22).
For the full FY2022, net profit eased 1.1 per cent to RM219.94 million from RM222.45 million for FY2021, while revenue declined by 17.5 per cent to RM451.65 million from RM547.48 million.