Avaland sees net profits surge to RM17.2 mil in 3Q2023

• Meanwhile, for the first nine months ended Sept 30, 2023 (9M2023), Avaland also saw its revenue more than double to RM346.6 million from RM148.4 million in the previous corresponding period

SUBANG JAYA (Nov 24): Avaland Bhd  saw its net profits surge to RM17.2 million in the third quarter ended Sept 30, 2023 (3Q2023 from a net profit of RM6.2 million in the previous corresponding quarter, while its revenue in 3Q2023 increased by almost threefold to RM156.2 million from RM56.3 million previously.

Meanwhile, for the first nine months ended Sept 30, 2023 (9M2023), Avaland also saw its revenue more than double to RM346.6 million from RM148.4 million in the previous corresponding period. This resulted in the group reporting a net profit of RM25.2 million in 9M2023 from a net loss of RM7.6 million in the previous corresponding period.

According to a media release from Avaland, the improved performance came on the back of the strong sales and healthy construction progress from the group’s ongoing projects, namely Aetas Damansara, Alira Subang Jaya, Sanderling and Casa Embun.

“Despite the economic and market challenges in the first nine month of 2023 such as the weaker Ringgit and the higher interest rate environment (current overnight policy rate at 3% vs 2.5% in Sept 22022), our group recorded an improved performance with a revenue of RM156.2 million, which is 37.3% higher than the revenue registered in the preceding quarter,” said Teh Heng Chong (pictured), Chief Executive Officer of Avaland.

“It is also the highest revenue registered by our group since the fourth quarter of the financial year ended Dec 31, 2020. We are now harvesting the fruits of our rebranding efforts as our sales have maintained its upward trajectory RM428.5 million in 9M2023, which is 78.7% of our full year sales in 2022. All of our on-going projects registered healthy take-up rates of between 70% and 95%. We are confident of achieving 100% sales upon completion of our projects based on the performance of our recently completed projects,” he added.

In addition, the group launched Phase 1 of Alora Residences in August 2023 and has since achieved take-up rate of 34%.

Located at USJ, Subang Jaya, Alora Residences is the first phase of the 2Fifth Avenue development and comprise 770 serviced apartments and 8 retail units with total GDV of RM551.9 million. As at Sept 30, 2023, the group’s unbilled sales grew 20.4% to RM867 million from RM720.2 million as at Dec 31, 2022, providing the group with earnings visibility over the next few years.

“To further bolster our future earnings, we are planning to launch Amika Residences in the 4th quarter of 2023 which is located adjacent to Alira Subang Jaya. Amika Residences is a Japanese-inspired development with 493 units of serviced apartments with neighbourhood retail units with a total GDV of RM452.1 million.

“We are confident that the new project will be well accepted by the market considering the high number of registrants of interests, its strategic location, unique concept and design for post-pandemic lifestyles,” said Teh.

As an initiative to encourage home-ownership of green certified properties, Avaland signed a Memorandum of Understanding with Alliance Bank Malaysia Bhd (Alliance Bank) for the Alliance Bank Green Mortgage Financing Package where purchasers of the group’s green certified properties will be able to enjoy lower interest rates by 10 basis points (bps) from the current preferential rate, subject to the customer’s lending profile.

Avaland Bhd​​ is a strategic partner with EdgeProp START, featuring the Sanderling, Casa Embun and Alora Residences developments.  

All Avaland Bhd​​ homebuyers also get to enjoy rewards worth up to RM3,888 and stand a chance to win a set of JBL Bar 1300 speakers worth RM7,999 when you sign up on EdgeProp START from now till Dec 31.

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