United Overseas Australia guides for lower 2021 profit on Covid impact

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United Overseas Australia (UOA) guided Wednesday that it expected its net profit for 2021 to come in at around A$80 million, dropping from A$97.34 million a year earlier amid the impact from the Covid-19 pandemic.

But revaluation of a Vietnam project may be bolstering the bottom line, the company indicated in a filing to SGX.

The group’s activities in Malaysia, Vietnam and Australia have all been impacted by the pandemic in some way during the year resulting in a reduction in sales of properties, a reduction of income from business within hospitality and rental operations, depressed valuation of properties held and a slowing of the launch of new projects.

During the year, the group completed its first project in Vietnam enabling the development to be revalued to fair value instead of being carried at development cost which is expected to have a positive impact on the group’s results.

UOA said it is in “a strong position” as opportunities emerge amid easing pandemic restrictions, with depressed property values to improve as businesses reopen.

The company is a property developer with operations mainly in Malaysia, but it is incorporated in Australia, and is listed in both Australia and Singapore.