UOA Development Reports 116.5% Revenue Growth, RM73.9M Profit in Q1 2025
UOA Development Bhd reported a striking surge in first quarter 2025 revenue and profit, driven by strong sales and ongoing project progress. The company’s robust unbilled sales pipeline signals sustained growth ahead.
- Q1 2025 revenue jumps 116.5% to RM152.1 million
- Profit after tax attributable to owners rises 48.8% to RM73.9 million
- New property sales hit RM265 million, led by Bamboo Hills and Aster Hill
- Unbilled sales stand at RM891.7 million, supporting future earnings
- No dividends paid this quarter; final dividend proposal of 10 sen per share announced
Strong Quarterly Performance
UOA Development Bhd, a key subsidiary of United Overseas Australia Ltd, unveiled its financial results for the first quarter ended 31 March 2025, showcasing a remarkable leap in revenue and profitability. The company’s revenue more than doubled year-on-year, reaching RM152.1 million compared to RM70.3 million in the same period last year. Correspondingly, profit after tax attributable to owners climbed nearly 49% to RM73.9 million.
This impressive growth was primarily fueled by the progressive recognition of revenue from ongoing development projects, including Aster Hill, Laurel Residence, Bamboo Hills Residences, and a medical centre in Bangsar South. These projects continue to anchor the company’s financial momentum amid a competitive property market.
Robust Sales and Pipeline
New property sales for the quarter reached approximately RM265 million, with Bamboo Hills Residences, Aster Hill, Duo Tower, and Laurel Residence accounting for the bulk of transactions. This strong sales performance underpins the company’s confidence in its product offerings and market positioning.
In addition, the company reported unbilled sales of RM891.7 million as at 31 March 2025. This substantial backlog represents future revenue streams that will be progressively recognised as projects near completion, providing a solid foundation for sustained earnings growth in the coming years.
Financial Position and Outlook
UOA Development’s balance sheet remains robust, with total assets of RM6.44 billion and a net asset per share of RM2.18. The company maintained a conservative approach to borrowings, with minimal secured term loans and no debt securities, reflecting prudent financial management.
While the profit before tax for the quarter declined compared to the immediate preceding quarter, down 46% to RM93.9 million, this was attributed to the timing of revenue recognition from ongoing projects rather than any operational weakness.
Looking ahead, the company remains committed to exploring strategic land acquisitions that align with its growth objectives, signalling an appetite for expansion despite market uncertainties.
Dividend and Governance Updates
No dividends were paid during the quarter; however, the board has proposed a final single-tier dividend of 10 sen per share for the financial year ended 31 December 2024, subject to shareholder approval. This proposal reflects the company’s confidence in its cash flow and commitment to returning value to shareholders.
Additionally, the company updated its committee members, though no material changes impacting operations or strategy were disclosed.
Bottom Line?
UOA Development’s strong first quarter sets a promising tone, but investors will watch closely how unbilled sales convert into sustained profits amid evolving market conditions.
Questions in the middle?
- How will UOA Development’s unbilled sales translate into revenue in the next quarters?
- What strategic land acquisitions might the company pursue to fuel future growth?
- Will the proposed final dividend gain shareholder approval and what does it signal about cash flow?