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- Following recent acquisitions, Avaland has about 187 acres of land bank with an estimated gross development value of RM11.6 billion to be developed over the next decade.
KUALA LUMPUR (Nov 4): Avaland Bhd (KL:AVALAND) may see lower earnings after a record 2024, though investors should focus on the developer’s next growth stage, said Public Investment Bank.
Billings could improve as construction and sales progress ramp up, the house said in initiating Avaland on an 'outperform' call that also marks the company’s first analyst coverage since its 2023 rebranding. Overall, net profit for 2025 could moderate to RM76.6 million, according to its estimates.
“From a history of slow sales cycles and operational inefficiencies, Avaland now boasts healthy revenue growth, high-margin product lines and a robust pipeline of launches,” Public Investment said.
Shares of Avaland have declined about 22% so far this year amid a decline in earnings in the first six months of the year. The company changed its name from MCT Bhd in 2023 after Ayala Land, the largest property developer in the Philippines, acquired a controlling stake in the company.
Ayala Land now owns about 66% of Avaland. Following recent acquisitions, Avaland has about 187 acres of land bank with an estimated gross development value of RM11.6 billion to be developed over the next decade.
“Avaland offers both near-term earnings visibility and long-term growth,” Public Investment said.
The company’s plan to launch two-to-three projects a year would yield annual sales of about RM800 million and keep its unbilled sales “healthy” at close to the RM1 billion mark, the research house said.
Further, Avaland's venture into industrial development with a launch pipeline of RM1.5 billion “positioned the group favourably through revenue stream diversification”, the house added.
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