Monday, 19 August 2013
Tambun: Into Uncharted Territory
Tambun Indah just recorded its highest ever quarterly revenue and net profit for FY13Q2 ended June 2013, and the acquisition of the remaining shares in Palmington & Tambun Indah Development is still yet to be consolidated into its account.
Pearl City development contributes approximately 62.3% of Tambun Indah's total revenue.
Tambun Indah's FY13Q2's revenue & profit rises 5% & 47% YoY, 5% & 19% QoQ to RM 82.6mil & RM14mil respectively, due to better sales and higher property selling price compared to previous quarters.
At the moment there are quite a lot of projects which are near completion. Projects that should be handed over to buyers within this 1-2 months include Pearl Villa & Pearl Square, while Dahlia Park, Tanjung Heights and Pearl Indah should follow soon in year end or early next year. Capri Park, Kelisa Residence & may be Carissa Villa should also get the OC by mid 2014. With so many projects near completion, Tambun Indah needs to keep on launching new projects in order to continue its growth.
The construction of Pearl Residence, Pearl Impian, BM Residence & Straits Garden has been running at full force while Pearl Avenue shop offices have just started piling work this month. New projects Camellia Park in Butterworth and Permai Residence at Bukit Mertajam are expected to be launched soon within this year.
Camellia Park, Raja Uda
Camellia Park is located at Butterworth's hottest area Raja Uda next to the under-constrcuted Woolley Avenue commercial area and shopping complex, thus it should be able to generate good sales. While Permai Residence is located just in front of DNP (WingTai Asia) BM Utama where its latest gated 3 storey semi-D Sentinelle Ville is priced more than RM1 million a unit. Project at current Bukit Mertajam hottest area Song Ban Kheng road, Taman Bukit Residence is also in the pipeline.
Location of Seri Permai (Permai Residence)
Penang Second Bridge is to be completed in September and Jit Sin High School SPS branch is expected to start construction at the same time. All these will give Tambun Indah's Pearl City a boost.
Tambun Indah has also gone back to net cash position after FY13Q2 with a cash of RM117mil and total borrowing RM107mil. It should continue to search for more land banks to "diversify" from its Pearl City development.
When the newly acquired shares from Nadayu is fully consolidated into its earning, surely Tambun Indah will be able to maintain its positive growth for the next one year or two.