UEM Edgenta Berhad (UEM Edgenta), a leading Asset Management and  Infrastructure Solutions company in the region, today announced its unaudited financial results for the first  half of 2024, ending 30 June 2024 (1H FY2024).

UEM Edgenta reported a revenue of RM1.44 billion for 1H FY2024, marking a 6.4% increase compared  to the RM1.35 billion recorded in the same period last year. The net profit for the second quarter of 2024  (Q2 FY2024) also saw an uptick, rising by 2.1% to RM12.8 million from RM12.5 million in Q2 FY2023.  These results underscore UEM Edgenta's commitment to delivering consistent financial performance  amidst a dynamic global economic landscape.

A total of RM2.0 billion in new contracts were secured in 1H FY2024, matching the total new wins in  FY2023. More than 90% of these wins came from its international business in Singapore, Taiwan China, and the  Middle East. In Singapore, continued execution excellence has driven strong and healthy order book  replenishment of RM1.2 billion in healthcare support services and integrated facility management contracts  with clients beyond the healthcare sector. The operations in the Kingdom of Saudi Arabia successfully  secured their first hospital contract, further expanding their footprint in the region. Domestically, the Asset  Consultancy division is making significant strides with more than RM67.7 million in new wins, the majority  of which are Energy Efficiency (EE) projects, reaffirming its RM200 million zero-capex commitment made  in September 2023. UEM Edgenta is bolstered by a solid order book of approximately RM10 billion as of  30 June 2024, providing long-term earnings visibility and positioning the company to navigate potential  challenges while maintaining financial stability.

UEM Edgenta's optimism is strengthened by the significant progress made in realising our targeted cost  savings, initially set at RM100 million over five years under EoTF2025, which we are on track to achieve  by the end of 2024—a year ahead of schedule. These savings have been driven by operational excellence,  optimized procurement, and a leaner business structure. Building on this momentum, the Company is  targeting an additional RM150 million in savings over the next five years, focusing on key cost optimisation  areas, including spend prioritisation, simplifying the organisation and corporate structure, supply chain  management, contract renegotiation, and streamlining operations through automation and technology. The  Company is on track to achieve its Phase 1 target of a 10% improvement in addressable costs by the end  of the 2024 financial year.

In Asset Management Services, the company is focused on maintaining its market leadership by advancing  Smart and Green Facilities Management, emphasizing cutting-edge technology for efficient and  sustainable asset management. Additionally, our strategic acquisition of the Kaizen Group in the UAE,  completed in 1H FY2024, further strengthens our market position and drives financial growth through a  cohesive integration with our existing operations in the Middle East, which is certain to unlock new business  opportunities in the region.

With a robust order book extending beyond 2030, the Infrastructure Services Division enjoys strong  earnings visibility. Concurrently, it is broadening its capabilities beyond road maintenance to include areas  such as solar photovoltaic system maintenance and expanding its presence in Indonesia's infrastructure  services market. Additionally, the Recycled Asphalt Pavement (RAP) premix plant in Perak is now fully  completed and operational, positioning the business within the pavement products value chain.

Syahrunizam Samsudin, Managing Director/Chief Executive Officer of UEM Edgenta, said, "We are  committed to optimizing our resources and refining our operational model to enhance efficiency across all  levels. Our strong and steadily replenishing order book not only provides clear visibility into long-term  earnings and financial stability but also underscores our resilience in navigating market fluctuations."

"As we advance with our Edgenta of The Future 2025 (EoTF2025) strategies, we are confident that our  resilience and focus on both business preservation and growth will empower us to overcome challenges  and deliver outstanding performance throughout the year. Our ability to adapt and persevere positions us  strongly to meet future demands and achieve sustained success," he added.

Looking ahead, UEM Edgenta remains committed to exploring new possibilities and advancing industry  standards. By steadily integrating innovation and prioritizing sustainable growth, the company continues  to create value for its stakeholders while striving to deliver practical and forward-thinking solutions.