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Titijaya to launch projects worth RM838m in FY19, eyeing RM500m sales

 

KUALA LUMPUR (Nov 30): Titijaya Land Bhd plans to launch three projects worth a total RM838 million in gross development value (GDV) in its current financial year ending June 30, 2019 (FY19), from which it aims to achieve up to RM500 million in sales.

The new launches comprise the Phase 1 of Damaisuria @ Subang, which carries an estimated GDV of RM180 million, Phase 2 of 3rdNvenue @ Embassy Row, which has an estimated GDV of RM338 million and Phase 1 of Riveria City @ KL Sentral, worth RM320 million, its deputy group managing director Lim Poh Yit said.

“With the new launches, we are targeting a sales target of RM400 million to RM500 million. The first-quarter sales look quite alright, so we are keeping to the sales target at the moment,” Lim told the press after Titijaya’s annual general meeting yesterday.

Titijaya plans to release the results of its first quarter ended Sept 30, 2018 (1QFY19) today.

At present, Lim said the group’s unbilled sales stand at RM320 million, which should provide earnings visibility for the next one year.

FY19’s sales target is actually same as FY18’s, which was not achieved as it reported total sales of RM343 million that year due to the postponement of new launches for the Damaisuria project, Lim said.

Nonetheless, Lim is upbeat about the company’s long-term prospects due to its sizeable land bank of about 208 acres (84.17ha) worth an estimated RM12.1 billion GDV — spread across the Klang Valley, Penang and Sabah — which he believes should keep the company busy for the coming years.

Moving forward, the company plans to venture into the Penang property market for its expansion, with a mixed project worth RM2.5 billion on a 8.26ha land it bought in 2015, which it plans to develop over 15 years.

“It’s quite an ambitious plan we have in Penang. We had the principal approval from the state government last month, and we expect to get all the other [necessary] approvals by 2020 so we can get ready for a launch,” Lim said.

Lim is optimistic about the group’s expansion into Penang, given that “Penang island has very limited [land] and is next to the Second Link [Bridge], as well as near a high-tech industrial zone.” “We will target the middle-income group, such as engineers who work for high-tech companies there.”

Lim also said the company will continue to strengthen its working relationship with reputable industry players, such as its current collaborations with China Railway Engineering Corp (CREC), to enhance its ability to offer high quality products to buyers.

With CREC, Titijaya is jointly developing a RM2.1 billion mixed development, 3rdNvenue, on a 6.06-acre site at the Embassy Row in Jalan Ampang, Kuala Lumpur.

Titijaya shares slipped 0.5 sen or 1.59% to close at 31 sen, valuing the company at RM409.77 million.

This article first appeared in The Edge Financial Daily, on Nov 30, 2018.

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