Avaland posts 1Q net profit of RM20.2m, plans RM1.3b launches for 2025

• Avaland chief executive officer Apollo Bello Tanco said the company had a steady start to FY2025, with RM147.5 million in new sales in 1QFY2025.

KUALA LUMPUR (May 30): Avaland Bhd (KL:AVALAND) reported a 4.7% drop in net profit for the first quarter ended March 31, 2025 (1QFY2025), mainly due to lower earnings from completed projects like Aetas Damansara and Alira Subang.

It saw a net profit of RM20.2 million for the quarter under review, compared with RM21.2 million for the year before, a bourse filing showed.

The company said the quarter marked a transition period, with older projects winding down and new ones still in early stages. Despite lower revenue, effective cost control helped soften the impact.

Revenue for the quarter was down 16.3% to RM179.5 million, compared with RM214.6 million.

No dividends were declared for the quarter.

Avaland chief executive officer Apollo Bello Tanco said the company had a steady start to FY2025, with RM147.5 million in new sales in 1QFY2025, driven by strong interest in Phase 2 of Casa Embun, Alora Residences, and Meria.

So far in 2025, Avaland has launched Meria (Phase 1) in February, a commercial hub in Cybersouth with a gross development value of (GDV) of RM123 million, and Alora Residences (Tower B) in April, with a GDV of RM220 million.

The company plans to launch another RM934 million worth of projects this year, bringing total planned launches to RM1.3 billion for 2025.

As of March 31, unbilled sales stood at RM944 million, up from RM900 million at end-2024, giving the company good earnings visibility for the future.

Apollo said the outlook for the property sector is positive, supported by steady demand and a stable interest rate environment. Loan applications for property purchases increased to RM106 billion in 1QFY2025, compared with RM104 billion a year earlier. Government incentives, like higher housing credit guarantees and tax relief for homes priced below RM750,000, are expected to boost demand from young families and first-time buyers.

Avaland remains cautiously optimistic, with strong demand for its well-located projects. Its 192-acre land bank in the Klang Valley (worth an estimated RM11 billion GDV) ensures long-term growth, and the company is also looking to acquire more land to support future expansion.

Avaland shares were unchanged earlier at 28 sen, giving it a market capitalisation of almost RM408 million.

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