By Chan Quan Min
Tambun Indah Land today announced a 28% increase in first-quarter net profit. Buoyed by a strong balance sheet with low net gearing, the company is looking to increase its landbank and is now actively scouting for property to buy, said the Penang-based property developer.
First-quarter net profit for the company rose 28% from the corresponding quarter last year to RM11.7 million on the back of RM78.3 million in revenue.
Tambun Indah attributed the encouraging results to stronger sales figures and revenue recognition from ongoing projects.
“Tambun Indah’s better profitability reflects our wider product mix as we increasingly move towards high-end developments for Penang’s discerning purchasers,” said the managing director of Tambun Indah, Teh Kiak Seng.
“Our continued success stems from the strategic locations of our developments.”
The largest contribution to total revenue came to from Tambun Indah’s iconic integrated township development, Pearl City, contributing as much as 66% to the company’s top line.
Pearl City will continue to contribute as much as RM1.9 billion in estimated gross development value over the coming six years up to 2020. Located in Seberang Prai’s southern region, Pearl City is instrumental in ensuring positive medium to long-term income for the company.
Pearl City stands to benefit from its location at the intersection of the North-South Highway and the soon to be opened, Penang Second Bridge.
Over the course of the rest of the year, Teh said Tambun Indah has RM256.6 million worth of projects slated for launch.
The timing is perfect; Penang’s property market, which has been posting dynamic growth rates over the past few years, is stable and driven by healthy core demand, according to Henry Butcher Malaysia.
Teh recognised the need to plan ahead and grow the company’s land bank. He said Tambun Indah is seeking to grow its property portfolio in mainland Penang.
“We hope to be able to conclude some deals by year-end and will make the necessary announcements when we do,” he added.
On Bursa Malaysia today the company was trading at RM1.36 unchanged for the day. After a prolonged post-election rally which began in early May, the counter has gained as much as 45% in value.
Tambun Indah is the developer of such projects as Juru Heights, Casa Impian and Casa Permai in mainland Penang. On Penang Island the company is responsible for the Scotland Villas project.
The developer is a pioneer in bringing the concept of gated developments to Penang, introducing the first gated and guarded community of Taman Tambun Indah, and the first gated strata landed homes of Palm Villas.
To date, Tambun Indah has launched more than 6,200 units of mainly residential properties in Penang, with a total gross development value of around RM2.1 billion.
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