UEM Edgenta Berhad (UEM
\nEdgenta), a leading asset management and infrastructure solutions company in
\nthe region, has had its Islamic Medium-Term Notes (IMTN) under its RM1.0
\nbillion Sukuk Murabahah Programme, with the outstanding
\nSukuk standing at RM250.0 million, upgraded to AAIS<\/i> from AA-IS <\/i>\u00a0\u00a0by MARC
\nRatings Berhad (MARC Ratings) for the first time since the rating was
\nfirst assigned in 2017. This upgrade
\nhighlights UEM Edgenta\u2019s strong financial position, consistent business growth,
\nand exceptional operational capabilities across its core segments, including
\nHealthcare Support Services, Property and Facility Management, Infrastructure
\nServices and Asset Consultancy.<\/p>\n
In its announcement,
\nMARC Ratings highlighted UEM Edgenta\u2019s sustained ability to generate consistent
\ncash flows, underpinned by its diversified revenue base and long-term
\ncontracts. For the first nine months of 2024 (9M2024), newly secured contracts
\ncontinued to grow, reaching RM2.3 billion (2023: RM2.0 billion), with
\nhealthcare solutions contributing 80%. This includes RM900 million worth of
\ncontracts for Healthcare Support Services in Singapore, spanning a period of
\nfive (5) years.<\/p>\n
In infrastructure
\nservices, carried out by wholly-owned subsidiary Edgenta PROPEL Berhad, the
\ngroup benefits from a long-term master maintenance services contract with Projek
\nLebuhraya Usahasama Berhad (PLUS) for highway maintenance. This contract
\nensures a stable income stream through 2038. Additionally, the group\u2019s
\nacquisition of a 60% equity stake in United Arab Emirates\u2013based Kaizen Group, a
\nproperty management company, for RM74.9 million in February 2024, further
\nexpands its property and facility solutions portfolio.<\/p>\n
MARC Ratings highlighted
\nthe Company\u2019s improved credit metrics and effective cost management
\ninitiatives, which have contributed to its enhanced risk profile and financial
\nresilience. The rating agency also acknowledged prudent financial management,
\nwhich has bolstered UEM Edgenta\u2019s liquidity position and debt servicing
\ncapacity. For 9M2024, revenue increased by 7.6% y-o-y to RM2.2 billion and
\npre-tax profit rose by 5.1% to RM65.6 million. Operating margins have remained
\nat around 3%, and the group is undertaking initiatives to strengthen the
\nprofitability margin by streamlining operations and leveraging technology to
\nenhance efficiency. The margin improvements are expected to allay concerns over
\nthe impact from the minimum monthly wage revision to RM1,700 from RM1,500
\neffective February 2025.<\/p>\n
Commenting on the rating
\nupgrade, Syahrunizam Samsudin, Managing Director\/Chief Executive Officer of UEM
\nEdgenta, said: \u201cThis recognition by MARC Ratings highlights the strength of our
\nstrategic direction and unwavering commitment to delivering value to our
\nstakeholders. The AAIS<\/i>
\nrating reflects UEM Edgenta\u2019s robust financial standing and superior ability to
\nmeet its financial obligations, reinforcing our reputation as a trusted leader
\nin the asset management and infrastructure solutions sector. It is a testament
\nto the confidence our clients and partners place in us. Moving forward, we will
\ncontinue to harness our expertise to drive sustainable growth and deliver
\nimpactful, innovative solutions across the markets we serve.\u201d<\/p>\n
UEM Edgenta\u2019s RM1.0
\nbillion Sukuk Murabahah Programme has been a cornerstone in supporting its
\nstrategic growth initiatives, including investments in technology-driven
\ninnovations and sustainability-focused projects. This latest rating upgrade
\nenhances the programme\u2019s appeal, positioning it as an attractive opportunity
\nfor investors seeking stable, high-quality investments.<\/p>\n