Tambun Indah pays 3 sen dividend amid lower profit in 3Q; to launch RM213m GDV projects

KUALA LUMPUR (Nov 22): Tambun Indah Land Bhd, whose third-quarter net profit fell 5.3% year-on-year, plans to launch three new developments with a combined gross development value (GDV) of RM213 million over the next 12 months.

Net profit for the three months ended Sept 30, 2017 (3QFY17) fell to RM23.89 million from RM25.23 million a year ago, mainly due to fewer ongoing projects and lower new property sales recorded given the overall market condition. Its new property sales came in at RM31.99 million in 3QFY17 compared with RM32.96 million in 3QFY16.

Earnings per share were also lower at 5.51 sen compared with 5.92 sen, while quarterly revenue dropped 16.9% to RM70.97 million from RM85.44 million.

Nevertheless, the Penang-based property developer declared a first interim dividend of 3 sen per share for the financial year ending Dec 31, 2017 (FY17), payable on Feb 12, 2018.

For the cumulative nine months (9MFY17), Tambun Indah recorded a 12.2% decline in net profit to RM67.97 million from RM77.41 million a year ago, while revenue fell 20.6% to RM221.56 million from RM279.08 million.

On prospects, Tambun Indah warned that the outlook for the property industry continues to be challenging.

"Based on the foregoing and subject to successful implementation of the projects, the group expects to achieve satisfactory performance in the current financial year," it said.

In a separate statement, Tambun Indah said two of the three new projects to be launched are Palma Residency and Permai Residency, which are located at Bukit Mertajam, Seberang Perai Tengah.

The RM50 million-GDV Palma Residency features 90 two-storey terrace houses and is anticipated for launch by end-2017.

Permai Residency, meanwhile, comprises 92 units of two-storey terrace houses, with a GDV of RM53 million. This would be the first phase of Tambun Indah's development project in Kota Permai and is planned to be launched by September next year.

The third upcoming development is Palm Garden, located at the Pearl City township. This RM110 million GDV project features an 18-storey apartment block with facilities, comprising 335 units of serviced apartments.

"Overall, Tambun Indah reported average take-up rate of 75% across ongoing projects of RM1.2 billion GDV. The group also currently has a pipeline GDV of RM3 billion, as well as unbilled sales amounting to RM95 million, which should contribute positively to the group for the next two to three years," it said.

Tambun Indah shares closed unchanged at RM1.01 today, bringing a market capitalisation of RM437.63 million. — theedgemarkets.com

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