KUALA LUMPUR (June 7): UEM Sunrise Bhd has partnered with nine companies in specialist fields to explore ways to meet the rising cost of building materials and leverage existing platforms.
The property developer signed a memorandum of understanding with the nine companies on Tuesday, June 7, to develop and strengthen mutually beneficial cooperation under the group’s vendor partnership program.
UEM Sunrise said the partnership program is expected to explore long-term synergies and promote cooperation between the group and participating companies in the areas of marketing and branding, where both parties will leverage their marketing platforms. to cross markets and increase brand awareness.
In addition to innovation, the program should provide opportunities for UEM Sunrise and participating companies to explore products and services to improve design development to align with corporate aspirations, including environmental goals. , Social and Governance (ESG).
This is in addition to cost savings – by forming closer cooperation which would identify business opportunities leading to cost savings.
The nine companies are Guocera Sdn Bhd, Bofi (Malaysia) Sdn Bhd, Innocera Marketing Sdn Bhd, Electrolux Malaysia Sdn Bhd, Cement Industries of Malaysia Bhd (CIMA), Panasonic Malaysia Sdn Bhd, Signature Cabinet Sdn Bhd, Aurum Precast Sdn Bhd and Gamuda . IBS Sdn Bhd.
EMU Sunrise Managing Director Sufian Abdullah said the partnership program enables the group to work closely with its long-term partners, and the group looks forward to realizing these synergies in managing fluctuation risk. prices and uncertainties of supply and demand.
“We hope in building such a relationship; we will be able to better manage our cost structure and deliver the right values to our customers,” he said in a statement.
Sufian added that UEM Sunrise will continue to monitor and refine its pricing strategy based on several key cost drivers, in addition to building material prices, given market volatility.
Last month, UEM Sunrise posted a net profit of RM19.02 million for the first quarter ended March 31, 2022, compared to a net loss of RM4.32 million a year earlier, as revenue jumped following the recognition of the contribution from the sale of 19 industrial plots to Iskandar Puteri in December 2020.
The improvement in revenue – up 64.8% to RM416.45m from RM252.69m previously – was also due to higher progress billings and progress in construction of local developments.
UEM Sunrise’s share price was 2.9% or one sen lower at 33.5 sen on Tuesday, June 7, carrying a market capitalization of RM1.67 billion.