KUALA LUMPUR (Feb 13): Property developer Tambun Indah Land Bhd’s net profit fell 57.44% to RM12.15 million in its fourth quarter ended Dec 31, 2022 (4QFY2022) from RM28.55 million a year ago.

The group's earnings per share also declined to 2.76 sen from 6.56 sen in 4QFY2021, according to its Bursa Malaysia filing on Monday (Feb 13).

Revenue likewise declined by 49.84% to RM53.93 million from RM107.52 million due to lower net property sales and fewer ongoing projects, and the group adopted a cautious approach for new property launches given the overall market condition.

“Revenue was mainly contributed by residential property developments in Pearl City, Simpang Ampat which accounted for approximately 96.9% of the total revenue in the segment for the current quarter under review,” it said.

Meanwhile, its net profit for the financial year ended Dec 31, 2022 (FY2022) dipped 0.76% to RM61.16 million from RM61.63 million in FY2021, while its revenue slipped by 11.1% to RM227.49 million from RM255.88 million offset by lower cost of sales.

“The outlook for the property market in the year 2023 is expected to remain affected by a rising interest rate environment in the midst of a global inflationary setting, coupled with an escalation in construction cost,” said the group.

“Based on the foregoing, the group expects to achieve a moderate performance for the financial year ending 2023.”

As of Dec 31, 2022, Tambun has seven ongoing projects with a total gross development value of approximately RM659.2 million with an average take-up rate of 83.9% and unbilled sales of RM77.1 million, which are expected to contribute positively to its earnings for the next two to three years.

Tambun Indah’s share price closed higher on Monday by 14 sen or 17.28% at 95 sen. Its market capitalisation was RM417.35 million.