KUALA LUMPUR (Feb 23): Penang-based property developer Tambun Indah Land Bhd, which posted a 14.6% increase in fourth-quarter 2016 net profit, plans to launch RM170 million worth of new projects this year.
The three projects comprise Pearl Saujana — Phase 1 and Pearl 28 in its Pearl City township development in Seberang Perai, Penang, as well as Palma Residence in Alma, Penang.
In a statement today, Tambun Indah said it is optimistic that the planned launches are in line with the group's focus in the affordable landed property segment. As at Dec 31, 2016, it achieved 80.3% take-up in its ongoing projects totalling RM1.4 billion.
It also noted that it has a pipeline gross development value (GDV) of RM3.1 billion to be developed over the next seven years. As at Dec 31, 2016, unbilled sales amounted to RM196.9 million, which would contribute positively to the group's earnings for the next two to three years.
Tambun Indah saw net profit rose 14.6% to RM34.79 million or 8.15 sen per share in the fourth quarter ended Dec 31, 2016 (4QFY16) from RM30.35 million or 7.16 sen per share a year ago, as its property development projects were on track and progressed as scheduled.
Quarterly revenue, however, fell 10.2% to RM81.75 million from RM91.05 million in 4QFY15, mainly due to lower new property sales recorded. The group recorded new property sales of RM17.78 million in 4QFY16 compared with RM70.27 million in 4QFY15, which saw the launch of Raintree Park 2 which had a total GDV of RM221.8 million.
For the full year FY16, the group's net profit increased 11% to RM112.2 million from RM101.12 million in FY15, due to progress billings being on track, as well as favourable product mix in property development, additional rental from newly completed investment properties and a net fair value gain of RM5.2 million from investment properties.
This was despite a 1.9% decline in revenue to RM360.84 million in FY16 from RM367.65 million in the previous year, mainly due to lower new property sales recorded. Tambun Indah said the new property sales recorded for FY16 fell to RM229.13 million from RM263.41 million in FY15.
Tambun Indah shares closed up one sen or 0.71% at RM1.41 today, for a market capitalisation of RM599.2 million.