KUALA LUMPUR: Unfazed by slowdown jitters, Penang-based property player Tambun Indah Land Bhd saw a 115.7% surge in net profit to RM25.3 million in the first quarter ended March 31 of financial year 2014 (1QFY14), from RM11.7 million a year ago.
Despite the various cooling measures to curb speculation and stringent bank loan requirements by Bank Negara Malaysia, Tambun Indah achieved revenue of RM112 million, up 43% year-on-year from RM78.3 million previously. Its earnings per share increased to 6.41 sen from 3.77 sen a year earlier.
In a statement yesterday, the property developer said its improved performance in 1QFY14 is attributed to higher progress billings and sustained new take-ups of the group’s ongoing projects.
Additionally, its 1Q bottom line was enhanced after accounting for the entire profit contribution from its subsidiaries Palmington Sdn Bhd and Tambun Indah Development Sdn Bhd, the developers of the group’s flagship township, Pearl City in Penang.
The higher revenue, meanwhile, was mainly contributed by its residential and commercial properties in Pearl City, which contributed 67% of the total revenue in the property development and management segment.
The group’s ongoing property development projects are Capri Park, Carissa Villas and Camellia Park in Butterworth; BM Residence in Bukit Mertajam; Pearl Residence, Pearl Indah 3, Pearl Impian and Pearl Avenue in Pearl City in Simpang Ampat; and Straits Garden in Penang Island, said Tambun Indah.
Revenue from the construction and project management segment was also higher in 1Q, compared with the previous corresponding quarter, due to higher construction progress achieved.
The group’s unbilled sales of RM469.9 million will be recognised in the next two to three years, it said.
As at 1QFY14, Tambun Indah achieved an average take-up rate 84.9% across its ongoing projects with total estimated gross development value of RM975.7 million.
It has been reported that Tambun Indah is aiming for sales of RM500 million for the current financial year as it rolls out RM600 million worth of property launches.
Managing director Teh Kiak Seng (pic) said the continued strong response to its properties reflects the increasing vibrancy of the Penang mainland’s economy, largely driven by increased inflows of foreign direct investments and the setting up of various public amenities and facilities.
“We are pleased with the positive head start in 2014, given the prevailing uncertainties in the domestic property development sector,” Teh said.
This article first appeared in The Edge Financial Daily, on April 29, 2014.
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