Titijaya group managing director Datuk Lim Poh Yit
KUALA LUMPUR: Titijaya Land Bhd
’s unbilled sales of RM246miil as of June 2024 is expected to contribute positively to the group's earnings.
The property developer currently has six active projects with a combined gross development value of approximately RM1.88bil. As of June 2024, these projects have achieved an average take-up rate of 63%.
Titijaya reported a net profit of RM28.92mil in the financial year ended June 30, (FY24), a more-than-threefold year-on-year (YoY) increase and the highest annual profit since FY20.
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.
Revenue, however, dropped 30% YoY to RM254.86mil in FY24, from RM362.87mil a year ago.
In the fourth quarter ended June 30(4Q24),Titijaya swung back into the black with a net profit of RM2.59mil, as compared to a net loss of RM21.33mil a year ago.
The improved profitability of the group in 4Q24 was due to compensation the group received for the temporary occupation of land belonging to SACC for the upcoming LRT3 project.
Revenue in 4Q24 stood at RM55.81mil, down 52% from RM115.23mil in the year-ago period.
Group managing director Datuk Lim Poh Yit said moving forward the group 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,” he said.
“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,” Lim said.
Titijaya will install a rooftop solar energy system at its logistics facility to cut carbon emissions, reduce energy costs, and support renewable energy.
“We expect the Pinang logistics facility to be completed by the second quarter of FY25. The facility is set to be leased to DHL for ten years and provide the group with an average of about RM185mil gross rental over this period,” Lim said.
