Titijaya Land’s 2Q net profit slips 2.9%

KUALA LUMPUR (Feb 19): Titijaya Land Bhd saw net profit slip 2.9% to RM17.63 million or 4.98 sen per share for the second financial quarter ended Dec 31, 2015 (2QFY16), from RM18.15 million or 5.14 sen per share a year ago, mainly due to higher recognition of lower profit margin projects, as well as cost savings in the previous corresponding quarter.

In a filing with Bursa Malaysia today, the property developer said it recorded cost savings from Subang Parkhome I & II in 2QFY15.
 
Revenue for 2QFY16, however, came in 59.1% higher at RM105.28 million, from RM66.19 million in 2QFY15, as it recognised progress contribution from its 3Elements, Zone Innovation and Embun property projects.
 
For the six months period (1HFY16), net profit declined 7% to RM38.26 million or 10.80 sen a share, from RM41.15 million or 11.68 sen a share a year ago.
 
Revenue, meanwhile, was 23.3% higher at RM189.81 million, compared with RM153.92 million registered in 1HFY15.
 
In a separate statement, Titijaya Land said as at end-December 2015, its balance sheet has a total equity of RM502.6 million and a net gearing of 0.08 times.

It added that the group’s unbilled sales stood at RM652.5 million.
 
Moving forward, Titijaya Land's group deputy managing director Lim Poh Yit said the management remains cautious of the industry, due to various market sentiments that has presented itself in 2015 and in 2016 as well.
 
“With that said, we are confident that we can maintain a steady profit for FY16 and we have property launches with gross development value of RM396.3 million planned for calendar year 2016,” he said.
 
The group’s wholly-owned subsidiary Titijaya Resources Sdn Bhd had on Oct 3, 2015 entered into an agreement with Amona Development Sdn Bhd to form a joint venture for future property development opportunities within Kuala Lumpur.
 
“This is in line with the group’s plans to further expand its property development portfolio,” Titijaya Land said.
 
At 3.49pm, Titijaya Land shares were traded unchanged at RM1.55, with 24,000 shares exchanging hands. Its market capitalisation was RM551.39 million. — theedgemarkets.com

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