Tropicana to roll out new launches worth over RM430m

This article first appeared in The Edge Financial Daily, on November 27, 2018.
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KUALA LUMPUR: Property developer Tropicana Corp Bhd said there are plans to roll out new phases across its signature developments amounting to a gross development value (GDV) of more than RM430 million.

“These comprise the second phase of commercial shoplots at Tropicana Aman in Kota Kemuning; the fourth landed residential phase at Tropicana Heights, Kajang; and a new commercial phase at Tropicana Metropark, all expected to contribute positively to the group’s earnings for the coming years,” it said in a statement yesterday.

It also announced yesterday that net profit rose 10.5% to RM34.15 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM30.91 million a year ago, mainly due to lower tax expenses. Its earnings per share increased to 2.34 sen for 3QFY18 from 2.11 sen for 3QFY17.

Quarterly revenue, however, fell 33% to RM307.11 million from RM458.03 million a year ago, on lower sales and progress billings from the various stages of construction works for the group’s existing ongoing projects scheduled for completion in late-2018 and 2019.

For the cumulative nine months (9MFY18), the group’s net profit increased 13.5% to RM118.55 million from RM104.45 million a year ago, which it attributed to prudent cost savings from its projects.

Revenue, however, fell 18% to RM1.04 billion from RM1.27 billion in 9MFY17, on lower sales and progress billings across projects in the Klang Valley, as well as those in the southern and northern regions.

Tropicana said it has unbilled sales of RM918.3 million to date, anchored by 15 ongoing projects, placing it in a strong position to deliver a sustainable earnings performance for the remaining year.

“Against a challenging but growing property scene and a cautious consumer sentiment, the group believes there will still be demand for landed properties and integrated developments in prime locations with accessibility to good amenities and at an attractive pricing.”

Tropicana said it will remain focused on being market-driven and will unlock the value of its strategic land bank of 1,126.9 acres (456.04ha) in the Klang Valley, Genting and the southern region of Peninsular Malaysia with a potential GDV of RM46.6 billion.