Tambun Indah proposes 5.6 sen dividend for FY2022

• On prospects, Tambun Indah Land said the property market outlook in 2023 is expected to remain impacted by a rising interest rate environment, coupled with an escalation in construction costs.

KUALA LUMPUR (April 13): Property developer Tambun Indah Land Bhd said it has proposed a first and final single tier dividend of 5.6 sen per share for the financial year ended Dec 31, 2022 (FY2022), to be approved by shareholders at its upcoming annual general meeting.

“The dividend declared is in line with the group dividend policy of paying 40% to 60% of the group’s net profit attributable to the shareholders, excluding any valuation gain or loss on investment properties,” said Tambun Indah in a bourse filing, adding the entitlement and payment dates will be announced in due course.

The rate of the proposed dividend is lower by 0.3 sen compared to the 5.9 sen it paid for FY2021, the group noted.

Tambun Indah's net profit for FY2022 slipped to RM61.16 million from RM61.63 million, as revenue declined to RM227.49 million from RM255.88 million, mainly due to lower sales of new properties.

On prospects, it said the property market outlook in 2023 is expected to remain impacted by a rising interest rate environment, coupled with an escalation in construction costs.

As at end-December 2022, the group had seven ongoing projects with a total gross development value of RM659.2 million achieving an average take-up rate of 83.9%, with unbilled sales of RM77.1 million, which is expected to have a positive impact on its earnings over the next two to three years.

Tambun Indah shares closed unchanged at 85 sen on Thursday, with a market value of RM371.22 million.