Avaland's 1Q net profit soars to RM21m on higher revenue

• Avaland chief executive officer Apollo Bello Tanco said the company looks to sustain its momentum built from last year.

KUALA LUMPUR (May 24): Avaland Bhd's (KL:AVALAND) net profit for the first quarter ended March 31, 2024 (1QFY2024) soared to RM21.17 million, from RM136,000 a year earlier, on the back of advanced construction progress in the group’s ongoing projects, namely Aetas Damansara, Alira Subang Jaya, Casa Embun and Sanderling.

In a bourse filing on Thursday, Avaland said revenue for the quarter jumped to RM214.58 million, from RM76.58 million a year ago.

Earnings per share rose to 1.45 sen from 0.01 sen.

The developer did not declare any dividend.

In a separate statement, Avaland chief executive officer Apollo Bello Tanco said the company looks to sustain its momentum built from last year.

“We continued the uptrend by reporting higher property sales of RM211.6 million in 1QFY2024, which was 83.9% higher than the RM115.1 million sales recorded in the previous corresponding quarter.

“The improved sales performance was in line with the encouraging take-up rate of the group’s ongoing projects, namely Phase 1 of Casa Embun (99%), Sanderling (86%), Alira Subang Jaya (88%), and Alora Residences (37%).

“In addition, we launched Amika Residences in March 2024, and we have since registered a take-up rate of 60%, highlighting our ability to introduce new products that effectively meet market demands,” said Tanco.

As at March 31, the group’s unbilled sales stood at RM852 million, providing it with earnings visibility over the next few years.

Moving forward, Tanco said the group had launched two projects so far this year, namely Phase 2 of Casa Embun in the Cybersouth township, with a gross development value (GDV) of RM201.7 million, and Amika Residences in Subang Jaya, with a GDV of RM452.1 million.

“We are targeting to launch another two new projects this year, namely Aetas Seputeh and Anja Residences & Signature Retail, with a total GDV of RM1 billion,” he said.

“Moving forward, we remain cautiously optimistic about our group’s prospects, with the property industry rebounding from the lows during the [Covid-19] pandemic, as the number of overhang residential properties continues to reduce,” said Tanco.

At 10.30am on Friday, Avaland had fallen 2.56% or one sen to 38 sen, with 6.97 million shares traded.

Avaland Bhd​ is one of EdgeProp START’s strategic partners. Sanderling, Alira Subang Jaya, Casa Embun, Alora Residences and Amika Residences are developments highlighted in this partnership. All Avaland homebuyers also get to enjoy rewards worth up to RM18,888.

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