Titijaya posts higher net profit in Q1

PETALING JAYA: Titijaya Land Bhd’s net profit for the first quarter ended Sept 30, 2017 rose 2.60% to RM20.56 million from RM20.04 million a year ago due to project launches deferment in view of market conditions.
In the property development segment, the group’s pre-tax profit increased to RM29.67 million due to a decrease in marketing expenses as the group took the strategic move to reposition launches to address changes in market demand.
Revenue for the quarter fell 4.18% to RM103.06 million from RM107.56 million a year ago due to a 4% drop in revenue from property development. The lower revenue was due to numerous project completion in the previous financial year including Seri Alam Phase I and II, Zone Innovation, Embun and 3Elements.
“Nevertheless, the progressive project progress for projects H2O and Primrose have contributed significantly to the revenue of the group,” it said in a filing with Bursa Malaysia today.
Revenue from other operations mainly resulted from rental collection while the pre-tax loss of RM1.05 million was mainly due to administrative expenses for untenanted investment property.
The group said its long term growth prospect remains positive based on its strong competitive position and solid demand for the type of residential properties that it offers.
“Moving forward into FY18, the group will scout for joint venture or land swap project opportunities with reputable government agencies. Currently, the group has collaborated with other synergistic partners such as CREC Development (M) Sdn Bhd and Bina Puri Construction Sdn Bhd,” it added.
The group said it is optimistic and confident of its future performance, given that most of its land banks are located in prime growth areas that are targets of prospective buyers such as well-developed and connected locations with public transportation facilities.
Titijaya ended the morning session 2 sen or 1.44% higher at RM1.41 with a total of 27,900 shares traded.