KUALA LUMPUR (Aug 23): Tambun Indah Land Bhd’s second quarter net profit dropped 29.67% to RM20.09 million, from RM28.57 million a year earlier, dragged by its property development division.
 
Revenue for the quarter ended June 30, 2017 (2QFY17) slumped 32.79% to RM70.12 million, from RM104.33 million previously, no thanks to fewer ongoing projects and lower new property sales recorded, given the overall market condition.
 
The Penang-based property developer did not declare any interim dividend.
 
For the cumulative six months (1HFY17), Tambun Indah’s net profit dropped 15.52% to RM44.09 million, from RM52.19 in the same period a year ago, while revenue declined 22.23% to RM150.59 million, from RM193.65 million.
 
Commenting on its financial performance, Tambun Indah said it had launched two projects in Penang during the latest quarter — the first phase of Pearl Saujana and Pearl 28 — valued at a gross development value of RM109.9 million and RM22.2 million respectively.
 
Tambun Indah said as at June 30, its ongoing projects — valued at RM1.6 billion in GDV — had achieved an average take up rate of 78.7%.
 
“The group noted steady progress billings from 13 ongoing projects, mainly from flagship township of Pearl City, including Avenue Garden, Raintree Park 2 and Pearl Tropika. Other developments beyond the township include Straits Garden, Bukit Residence, Permai Residence and Camellia Park,” Tambun Indah said in its statement to the local bourse today.
 
In the pipeline, the group's total property development projects are worth RM3 billion in GDV, while its unbilled sales amounted to RM132.8 million, which should contribute positively for the next two to three years, it said.
 
To date, Tambun Indah has launched more than 8,400 units of mainly residential properties in Penang, with total GDV of around RM3.2 billion. Its landbank stands at 631.46 acres, all of which are in Penang.
 
Tambun Indah said the outlook for the property industry continues to be challenging.
 
“Based on the foregoing and subject to successful implementation of the projects, the group will continue with its efforts to achieve satisfactory performance in the current financial year,” the statement added.
 
Shares in Main Market-listed Tambun Indah, controlled by its managing director Teh Kiak Seng with a 39.16% stake, closed unchanged at RM1.22 today, for a market capitalisation of RM528.63 million.