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Titijaya Land Berhad (“Titijaya” or the “Group”), a leading Malaysian property developer, reported a net profit of RM28.92 million for the financial year ended 30 June 2024 ("FY2024"), a more-than-threefold year-on-year ("y-o-y") increase and the highest annual profit since the financial year ended 30 June 2020.
The surge in net profit was driven by compensation the Group received for the temporary occupation of land belonging to Shah Alam City Centre Sdn Bhd ("SACC)", a wholly-owned subsidiary of Titijaya, for the upcoming third light rail transit (LRT3) project. For perspective, net profit in the financial year ended 30 June 2023 ("FY2023") was RM5.91 million.
The Group's revenue dropped 30% y-o-y to RM254.86 million in FY2024, from RM362.87 million a year ago. Revenue for the year was driven by sales of Neu Suites @ Off Jalan Ampang, The Riv @ KL Sentral, The Ria @ KL Sentral, and Seiring @ Bukit Subang.
For the financial quarter ended 30 June 2024 ("Q4 FY2024"), the Group swung back into the black with a net profit of RM2.59 million, as compared to a net loss of RM21.33 million a year ago. The improved profitability of the Group in Q4 FY2024 was due to compensation the Group received for the temporary occupation of land belonging to SACC for the upcoming LRT3 project.
The Group's net loss for the three months ended 30 June 2023 (Q4 FY2023) was mainly due to adjustments made for the reclassification of financial instruments, coupled with an impairment charge of RM14 million to reflect a reduced market value for the First Palm City Centre project in Lahad Datu, Sabah.
Revenue for Q4 2024 was RM55.81 million, a 52% decline from RM115.23 million in the year-ago period. The drop in revenue was mainly due to an over 90% take-up rate for the projects that the Group has already completed, leaving limited inventory for sale. At the same time, the Group's newer projects are still at an initial stage of development, resulting in minimal revenue contributions from these ventures.
Datuk Lim Poh Yit, Group Managing Director of Titijaya Group, said: "We are pleased to announce a strengthened performance by the Group for FY2024. Driven by the progress of major infrastructure projects as well as rising foreign direct investments (FDI) into Malaysia, the outlook for the property sector has definitely brightened over the past year. Demand has been robust for our completed and newly launched projects, and the Group continues to reap the rewards of our strategically located land bank in major Klang Valley cities. Moving forward, we will continue to make prudent investments in our landbank and strategically located development properties across the Klang Valley. A key focus for the Group will be how we can address the need for real estate developments that meet Environmental, Social, and Governance (ESG) principles. For instance, there is a major affordable housing shortage in prime areas, which is something the Madani government has taken note of. Housing is a basic human need, and as a major industry player, it is important that the Group tackles this issue head-on. On top of that, our Centralized Labour Quarter (CLQ) project, which we are developing in Klang Sentral, will provide sustainable and hospitable accommodation for workers in industrial zones around Klang and Shah Alam. Besides achieving a positive environmental and social impact, this project will also deliver positive financial returns for the Group. The Group will also invest in a rooftop solar energy system for our logistic facility. This initiative aligns with our commitment to reduce our carbon footprint, lower our energy costs and support the renewable energy transition. In addition to our work on new developments, we are working on boosting earnings contribution from sources of recurrent income. On this front, we expect our newly-completed hotel, Citadines Waterfront Kota Kinabalu, as well as the upcoming logistics facility in Bayan Lepas Waterfront, Pulau Pinang, to deliver a steady flow of earnings and drive our growth to a whole new level. We expect the Pinang logistics facility to be completed by the second quarter of FY2025. The facility is set to be leased to DHL for ten years and provide the Group with an average of about RM185 million gross rental over this period." |
