KUALA LUMPUR (Apr 29): Penang property developer Tambun Indah Land Bhd’s net profit came in 18.3% higher at RM29.91 million for the first financial quarter ended Mar 31, 2015 (1QFY15) from RM25.29 million a year ago, on positive take-up for its new launches and sustained revenue recognition from ongoing projects.

Earnings per share rose to 7.1 sen from 6.41 sen, according to its quarterly report to Bursa Malaysia today, which also showed that the group’s 1QFY15 revenue was at RM130.41 million, up 16.4% on-year from RM112.02 million.

Tambun Indah has also proposed a final single-tier dividend of 6.7 sen per share for FY14.

If approved by shareholders, this, together with an earlier 3 sen interim dividend that has already been paid, will make its total dividends declared for FY14 at 9.7 sen or RM40.6 million, which is 40% of the group’s FY14 earnings of RM102.14 million. The group has a dividend policy to distribute 40% to 60% of net profits to shareholders.

Tambun Indah (fundamental: 2.7; valuation: 2.4) said there were 87.3% average take-up rate in 1QFY15 for its ongoing projects, which have a total gross development value (GDV) of RM1.2 billion; unbilled sales amounted to approximately RM443.57 million.

These, it said, should contribute positively to the group’s earnings for the next two to three years.

Meanwhile, in a media statement, the group’s managing director Teh Kiak Seng said Tambun Indah’s 1QFY15 performance was commendable in light of the softer consumer sentiment following the implementation of the goods and services tax (GST) and stricter regulations on loan processing.

“We enjoyed healthy response to the newly-launched RainTree Park homes and Pearl Avenue (Phase 2) shop offices in 1Q15, despite the dampened buyer sentiment since the end of last year,” said Teh, who holds a 39.86% stake in the group as at last Dec 16.

“Together with the two new launches, Tambun Indah intends to unveil more new projects with GDV of approximately RM500 million in 2015,” he added.

Teh said Tambun Indah remains on the lookout for land bank expansion opportunities. The group’s net gearing stood at 0.03 times as at 1QFY15.

“At the same time, we note steady construction progress of the GEMS International School campus in Bandar Tasek Mutiara (Pearl City), which is targeted to open its doors for the first intake in September this year as scheduled,” Teh said.

“The new launches of residential homes, together with a thriving commercial and educational centre, would certainly add to the vibrancy of our Pearl City Township and position us aptly as a lifestyle hub in Mainland Penang,” he projected.

Tambun Indah closed unchanged at RM1.77 per share today, with a market capitalisation of RM746.48 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)