Wazzup Pilipinas News and Events

Tuesday, September 3, 2024

UEM Edgenta Delivers Resilient Performance in 1H 2024, Achieves Strategic Milestones

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, 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.

For further information on UEM Edgenta, visit https://www.uemedgenta.com.

About UEM EDGENTA BERHAD

UEM Edgenta (www.uemedgenta.com) is a leading Asset Management and Infrastructure Solutions company in the region and is a subsidiary of the UEM Group. Listed on the Main Market of Bursa Malaysia Securities Berhad (KLSE: EDGENTA), our expertise covers Healthcare Support and Property & Facility Solutions, and Infrastructure Services covering Expressways and Rail, including project management & engineering design capabilities via our Opus Consultants business arm.

Guided by our ‘Edgenta of the Future 2025’ vision, UEM Edgenta’s full suite of business services is driven by technological advancements throughout the business assets’ life cycle including consultancy, procurement & construction planning, operations & maintenance, as well as optimisation, rehabilitation and upgrades. Digital solutions across multiple industries positions UEM Edgenta as a powerhouse to become a Technology-Enabled Solutions Company with a focus on healthcare by 2025.

UEM Edgenta has operational presence in Malaysia, Singapore, Indonesia, Taiwan, United Arab Emirates and The Kingdom of Saudi Arabia.

REURASIA supports HDF Energy's Green Hydrogen Initiative in the Philippines

Hydrogène de France (HDF Energy) has solidified its partnership with the Department of Energy (DoE) and the Mindanao Development Authority (MinDA) through a newly signed Memorandum of Understanding (MoU). This pivotal agreement underscores the commitment to advance sustainable energy solutions across the Philippines, particularly through green hydrogen technologies.

Central to this initiative, REURASIA Management Corporation plays a vital role as the local consultant and technical expert, overseeing all critical studies and analyses required for the successful deployment of HDF Energy's projects in the country. With their deep expertise in renewable energy and comprehensive knowledge of the local landscape, REURASIA ensures that the projects align with both technical standards and the unique needs of the Philippine market.

Building on successful collaborations from previous years, the MoU marks a significant milestone in the Philippines' energy transition, emphasizing the decarbonization of its power sector. HDF Energy, in close cooperation with REURASIA, the DoE, and MinDA, aims to foster investments in renewable energy technologies, with a strong focus on hydrogen-based power generation.

As the leading local partner, REURASIA's contributions are instrumental in the realization of these ambitious projects, which are set to bring significant environmental benefits and energy resilience to the Philippines. Through REURASIA’s leadership in conducting technical studies, the initiative is poised to accelerate the deployment of HDF Energy’s Renewstable® multi-megawatt hydrogen power plants, providing a sustainable alternative to traditional energy sources.

This MoU signifies a strong commitment to a greener future for the Philippines, with REURASIA at the forefront, guiding the nation’s transition towards sustainable, hydrogen-powered energy solutions.

About Reurasia management corporation

REURASIA is a Filipino company dedicated to advancing sustainable energy solutions across Southeast Asia. Specializing in renewable energy, REURASIA offers comprehensive services including project management, engineering, and technical consulting. With a strong focus on environmental impact and community development, REURASIA supports industries and local governments in transitioning to clean energy by leveraging innovative technologies and sustainable practices. As a trusted local partner, REURASIA plays a critical role in the deployment of large-scale renewable energy projects, ensuring they align with both international standards and the unique needs of the Philippine market.

Empowering Indigenous Communities Through Media and Information Literacy

This is the third part of the four-part series Empowering Vulnerable Populations through Media and Information Literacy. This article discusses how Media and Information Literacy (MIL) empowers.

Indigenous communities by addressing unique challenges and promoting cultural preservation and digital inclusion.

As encouraged in previous articles, Media and Information Literacy should also be inclusive as much as possible. In a digital space where everyone can claim a web page, each voice deserves to be heard.

For this reason, this article will delve into indigenous people and the challenges and opportunities they face in the realms of the modern digital world.

Vulnerable Populations and the Digital Divide

Indigenous communities face unique challenges in terms of digital inclusion. They have difficulty accessing digital information. This challenge hinders their participation and amplifies the digital divide.

Moreover, they usually live in far-flung places where internet connectivity seems unavailable so aside from the problems of digital information access, they also have problems in digital infrastructure.

Another problem that they face is limited digital literacy due to socio-economic factors that hinder them from availing technology which could enable them to practice MIL.

Subconsciously, this may seem not a problem to them because they may not need them at all due to the culture and way of living they have. However, when the Indigenous community gains access to the digital world, they can further preserve their heritage and empower their communities.

MIL: A Powerful Tool for Indigenous Communities

MIL does not only ensure that a select few people reap the benefits of digital access. It also enables entire communities to thrive in the digital age.

As for the Indigenous populations, MIL offers a pathway to preserve their cultural heritage, promote their languages, and ensure their voices are heard in the media. Since they are deemed as vulnerable communities, they need connections to help them in every single way possible and that is what digital interconnection could offer.

However, this is easier said than done. There are some challenges that need to be addressed:

Key Challenges Faced by Indigenous Communities

• Digital Divide: They have limited access to the internet and digital devices. This stems from the fact that the community lacks the social capital to convince governments and other stakeholders to invest in their community whether it is basic commodities or more advanced policies.

• Cultural Barriers: The internet lacks culturally relevant content and resources that could penetrate their psyches. They are usually underserved and understudied. To resolve this issue, their way of life should be documented and uploaded via the internet so they could have a digital space library.

• Educational Gaps: They also suffer from lower levels of education and digital literacy due to the fact that they lack the social capital to convince stakeholders to invest in their communities.

Tailoring MIL Programs for Indigenous Communities

• Incorporate Indigenous Languages: Develop MIL resources in native languages.

• Cultural Sensitivity: Ensure programs reflect and respect Indigenous cultures.

• Community Involvement: Engage Indigenous leaders and members in development and implementation.

• Invest in Their Communities: They need financial investments in their basic necessities to more advanced commodities so the economic and digital divide would be minimized.

Conclusion

MIL is essential to empower Indigenous communities. It enhances their ability to navigate the digital world safely and responsibly. Tailored MIL programs that address their unique challenges are crucial for promoting cultural preservation, community engagement, and social inclusion. Investing in MIL initiatives for Indigenous communities is key to creating a more equitable and inclusive digital future for all.