KUALA LUMPUR (Nov 18): Tambun Indah Land Bhd’s net profit rose 48% to RM116.8 million for the third quarter ended Sept 30, 2014 (3QFY14) on higher take-up rates of its ongoing property projects in Penang.  

The Penang-based property developer’s earnings per share (EPS) came in higher at 6.22 sen against 5.22 sen a year ago. Revenue expanded 20.3% to RM116.8 million, from RM97.1 million in the previous corresponding quarter, thanks to strong demand for its properties, especially from its Pearl City, Simpang Ampat township.

In view of the positive results, Tambun Indah declared a first interim dividend of 3 sen per share, or dividend payout of RM12.3 million for FY14.

“The enhanced profitability in 3QFY14 was due to higher take-up rates of ongoing projects and increased billings in line with construction progress.

“The group also enjoyed full profit contributions from Pearl City in the current year, after successfully acquiring the minority stakes of Palmington Sdn Bhd and Tambun Indah Land Sdn Bhd in November last year,” it said in a press release today.

The company said the improvement in revenue was mainly contributed by residential and commercial properties development in Pearl City, Simpang Ampat which accounted for about 68% of the total revenue in its property segment in the third quarter.

As at September 30, 2014, the group’s unbilled sales amounted to RM457.3 million which will sustain the group for the next two to three years.

For the nine months ended Sept 30, 2014, Tambun Indah’s net profit rose 78% to RM76.3 million from RM42.9 million, while group revenue rose 38.3% to RM356.8 million from RM258.0 million in 3QFY13. EPS increased to 18.96 sen from 13.49 sen a year ago.

“Our strong performance underscores the sustained demand for affordable properties in Mainland Penang. It is noteworthy that Tambun Indah’s average take-up rate stands at 87% for all ongoing projects of RM1.2 billion,” said managing director Teh Kiak Seng.

He added that its four new projects launched in 2014 has a 77% taken-up rate to date, with cumulative gross development value of approximately RM290 million.

“This indicates that our newest launches continue to be keenly followed by buyers,” he pointed out.

In the first half of 2014, Tambun Indah launched four residential projects in Mainland Penang, namely Camellia Park, Permai Residence, Pearl Harmoni and Bukit Residence.

Tambun Indah share price closed unchanged at RM2.11 today, bringing it to a market capitalisation of RM870.21 million.