Tambun Indah net profit jumps 81%; declares dividend

by **Cals** Wed 20 Aug 2014, 00:52

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Tuesday, 19 August 2014 19:01

KUALA LUMPUR (Aug 19): Tambun Indah Land Bhd’s net profit surges nearly 82% to RM25.44 million for the second quarter ended June 30, 2014 from RM13.98million in the previous corresponding period.

The big jump in profit was driven by increased billings, higher take-up rates for on-going projects, higher percentage of project completions, as well as the commencement of new development projects during current quarter compared to the preceding corresponding quarter, according to the company's filing with Bursa Malaysia.

Revenue rose almost 55% to RM127.96 million from RM82.6million previously, while earnings per share expanded to 6.34 sen from 4.46 sen last year.

In view of the improved earnings, Tambun Indah has declared dividend of 4.6 sen share which will be paid on Sept 19.

Compared with the immediate preceding quarter, revenue increased by 14.2%
to RM127.96million from RM112.02million due to more project completions.

Tambun Indah said revenue from property development and property management activities increased by 59.3%, contributed by residential and commercial properties development in Pearl City, Simpang Ampat, which contributed approximately 73.0% of the total revenue in the segment for current quarter.

However, when compared with the same quarter last year, revenue from the construction and project management segment declined in the current quarter due to lower recognition rate,it said.

"Profit before tax was down 6.3% to RM33.1 million from RM35.3 million in the preceding quarter due to provision of RM29.6 million made for supplemental development costs on low cost housing projects as required by the authorities," the company said.

As at June 30, 2014, Tambun Indah has achieved an average take-up rate of 81.2% on its ongoing projects, with a total gross development value (GDV) of RM1.2 billion and unbilled sales of approximately RM493.08 million.

"These should contribute positively to the our earnings for the next two to three years," the company said.

The company believed it could achieve favourable performance in the current financial year based on the foregoing and subject to successful implementation of the projects.

Tambun Indah share price has fared well since the start of the year, rising from RM1.50 in early January to record high of RM2.60. The stock closed at RM2.40 today.