Property sales in 1HFY2024 rose 78.6% to RM476.3 million, from RM266.7 million in 1HFY2023, driven by encouraging take-up for its ongoing projects.
KUALA LUMPUR (Aug 28): Property developer Avaland Bhd (KL:AVALAND) reported a near doubling of its net profit for its second quarter ended June 30, 2024 (2QFY2024), thanks to better work progress and higher take-up rates.
Net profit for 2QFY2024 rose to RM21.6 million or 1.48 sen per share, from RM11.12 million or 0.76 sen per share in 2QFY2023, the group’s bourse filing on Tuesday showed. Revenue for the quarter surged 91.75% to RM218.3 million from RM113.84 million.
Avaland attributed the higher earnings to advanced construction work progress at its ongoing projects and commendable take-up rates for its recently launched Casa Embun Phase 2 and Amika Residences projects.
No dividend was declared during the quarter under review. For the January to June period of FY2024, Avaland reported a net profit of RM42.77 million, almost four times the RM11.25 million it made over the same half-year period last year, as revenue more than doubled to RM432.87 million from RM190.43 million.
Property sales in 1HFY2024 rose 78.6% to RM476.3 million, from RM266.7 million in 1HFY2023, driven by encouraging take-up for its ongoing projects, namely Phase 1 of Casa Embun (99%), Sanderling (90%), Alira Subang Jaya (92%) and Alora Residences (40%).
Avaland chief executive officer Apollo Bello Tanco said the demand for homes in Malaysia have continued to grow with loan applications for purchase of properties reporting a 3.3% rise in the first half of 2024 to RM307 billion from the previous corresponding period.
“The reinforced Malaysia My Second Home policy is attracting interest of foreigners for projects priced above RM600,000 and we are optimistic that it would help drive the demand for our AVA Prime and AVA Luxe products,” Tanco added.
Looking ahead, Avaland is cautiously optimistic of its prospects with the robust demand for the group’s projects amid its strategic location, strong value propositions and ability to meet the market’s requirements.
The group has a land bank of 194.4 acres across the Klang Valley with an estimated gross development value of RM11.5 billion that it said would provide earnings visibility for the next 10 years. As at end-June, its unbilled sales stood at RM954 million, up from RM863 million as at end-2023.
At the time of writing, shares in Avaland were trading unchanged at 31 sen, valuing the company at RM451.67 million.
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Source: EdgeProp.my
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