Titijaya upbeat about long-term prospects, aims for RM500mil sales
PETALING JAYA: Titijaya Land Bhd, which is bullish about its long-term earnings prospect, is targeting RM500mil in total sales for the financial year ending June 30, 2019 (FY19) due to new property launches.
For FY18, the property developer’s total sales stood at RM343mil.
Deputy group managing director Lim Poh Yit told StarBiz that for FY19, Titijaya aimed to launch three property projects with a total gross development value (GDV) of RM838mil.
Two of the projects are in Kuala Lumpur and the another is located in Bukit Subang.
The property developer’s total unbilled sales stand at RM320mil.
As for its landbank, Lim said the company has a total landbank of 208 acres, inclusive of joint ventures (JVs) worth an estimated GDV of RM12.4bil, which is expected to last until 2024.
In terms of earnings prospects, he was optimistic given Titijaya’s product mix, market positioning and encouraging demands for affordable residential properties.
“In FY18, 73% of the units that we launched fall below RM600,000 which is within the affordable category in the Malaysian context. Also worth noting is that most of our landbanks are located in prime growth areas which are well-developed and connected to public transportation facilities.
“Furthermore, we will continue to seek for more JVs and establish collaborations with reputable property companies in the region, such as our current collaboration with China Railway Engineering Corp and Tokyu Land Corp.
“We will like to establish a provisional collaboration to share expertise and knowledge in the real estate industry. This will enable us to learn and transfer skills from overseas experts, and subsequently create product offerings of a higher quality and better niche for local buyers,” Lim added.
The company’s net profit for FY18 was lower at RM73mil compared with RM77mil in FY17. However, revenue for the period was higher at RM399mil against RM381mil in FY17.
Lim said Titijaya’s competitive was its abil- ity to develop projects with a low land cost to GDV ratio.
“In regard to recent developments, 64% of our projects are below 12% in land cost against GDV. Land cost is also important in allowing us to offer more affordable homes. As the cost of living increases, so does the demand for affordable homes. We are well-positioned to meet this demand due to our capabilities in maintaining a low land cost in development,” he noted.
On plans to venture beyond the Klang Valley, Lim said moving forward, the Klang Valley and Sabah would remain the focus market for property development, adding that Penang might be the next destination for expansion.