Property is really hot now. People queue up to buy property like buying concert tickets. Almost every new launches being sold out before official launch, particularly in Klang valley and Penang.
There is one property company which I think is worth paying attention to, it's an IPO early this year: Tambun Indah. It is based at penang main land. This company has been very aggresive in recent 2 years, with many new project launches (more than 10!) since 2010 with decent take up rate. It's also busy acquiring new companies and land. It develops the land into a medium to high end properties in a short time after acquiring them. This quick turnover business model makes me think of Mahsing, one of Malaysia's best property developer which is very successful with this approach. Last week Tambun soft launched about 100 shop offices in Bandar Tasek Mutiara. All sold in one week. Current main project at Bandar Tasek Mutiara, Pearl Garden since end 2009 with almost 450 units are >95% sold. While the adjacent new Pearl Villa with 300+ units just launced few months ago are also almost 70-80% sold. Tambun Indah also launched many high-end condos in Butterworth area. Heard that the sales are good as well.
Bandar Tasek Mutiara at Simpang Ampat Penang. See how many future development there.
I believe year 2011 will be a very good and record year for Tambun Indah. I only have Tambun's 2010Q4 financial results. Though it's not accurate to compare a single quarter's result, anyway here are other listed developers' 2010Q4 results who have part of their foot in Penang.
| 2010Q4 Rev (mil) | 2010Q4 PAT (mil) | |
| Tambun | 40 | 25 |
| Ivory | 42 | 11 |
| Hunza | 63 | 10 |
| E&O | 41 | 3 |
| Asas Dunia | 17 | 3 |
| WingTai | 88 | 14 |
| PJDev | 145 | 16 |
| Mahsing | 299 | 31 |
| SPSetia | 518 | 62 |
| IJMLand | 255 | 90 |
| Suncity | 341 | 107 |
Companies in black are mainly based in Penang while companies in red are not. Tambun Indah is supposed to be the smallest company in this list, which can be partly seen from its revenue. However, it posted a high profit after tax, which is RM25 million in Q4 alone. Actually I'm not sure what constitute the profit in Tambun's 2010Q4, may be there's some one-off special large amount profit. If it's just profit from property sales, the margin is quite incredible (>50%!). Nevertheless, base on the response from its launches that I "see", 2011 will be the best year for Tambun Indah (though 2011Q1 result may not beat 2010Q4).
So I'm eager to see how's Tambun Indah's 2011Q1 results which should be annouced soon. What will be its profit margin? Can the profit better than last quarter? At RM0.705 today which is almost the IPO price, should I buy the share like its MD did for the past few months?
Latest financial result 2011Q1: Rev 36m, PAT 6m. Not as expexted but it's satisfactory and comparable to fellow developers. No surprise and should be no big share price movement. Anyway I think Tambun is still a good stock to hold, unless you wish to have some excitement.
ReplyDeleteU think Pearl Garden +Tasek Mutiara will be developed well? Is it good investment there, means property (haha not share)? How about anyone know about Super Corridor/Star Shop Lot in Simpang Ampat (near IKS there) by Aroma developer? Is it good to invest? I went there show room see. All semi-detached, 2 storey RM 660+, 3 storey from RM 770++ to million. My question is the location only. of course price also.
ReplyDeleteHi Teh. I used to think that BTM is not a good area to stay nor invest in until Tambun Indah comes in. We can see more middle income group and chinese here. I think u may already knew the main issue here: chicken farm. However, this seems not affecting the sales much. Pearl Garden is almost completed and we can know better then how's the living condition here. Though it's a bit far inside (good to live in) but the transport system is good. If Jit Sin school branch is confirmed around here, then no doubt this will be a good area.
ReplyDeleteFor the star walk commercial area, the price seems ok for a semiD. The population here is growing fast but I feel it is still not ready for high end commercial yet. It may also face the same issue - chicken farms nearby. For such a high end commercial area to be successful, I think F&B outlets are the most important. But if got many flies... just my 2 cents.