By Selangor Journal Team
SHAH ALAM, Aug 25 — Property developer Avaland Bhd recorded a revenue of RM113.8 million in the second quarter ended June 30, 2023 (2Q2023), its highest since 2020.
In a statement, the public listed company, previously known as MCT Bhd, said the figure represents over double the RM53.5 million quarterly revenue it collected in the previous corresponding period.
Similarly, the firm saw its net profit surge to RM11.1 million in the last quarter, a marked improvement to the RM7 million net loss it recorded in the same period last year.
Its revenue for the first six months of the year (1H2023) also more than doubled to RM190.4 million from RM92.1 million, resulting in its net profit increasing to RM11.3 million as opposed to the RM19.2 million loss in the corresponding half.
Avaland said this improved performance, particularly in the last quarter, is owing to the increased contributions from the group’s ongoing projects, namely Aetas Damansara, Alira Subang Jaya and Casa Bayu Townhouse.
Avaland chief executive officer Teh Heng Chong said the company is pleased with the turnaround it has achieved, despite facing headwinds in the first half of the year, including the increase in overnight policy rate in May and a weaker ringgit.
He said the performance is a reflection of the success of the strategies implemented by the firm to be more robust in facing the challenging operating conditions.
According to Teh, Avaland’s effort to strengthen sales performance came to fruition thanks to increased sales by 7.8 per cent to RM267 million in 1H2023, from RM247 million in the same period last year.
“The improved sales were attributed to projects launched in 2H2022, namely Sanderling, Casa Embun and Phase 2 of Alira Subang Jaya, which have take-up rates of 50 per cent, 54 per cent and 66 per cent respectively,” he said.
Teh added that ongoing projects, namely Aetas Damansara and Phase 1 of Alira Subang Jaya, have similarly registered healthy take-up rates of 90 per cent and 89 per cent respectively.
“We expect an acceleration in construction progress for both projects in the coming months,” he said.
Avaland said its unbilled sales also grew 18 per cent to RM852 million as of June 30 from RM720 million at the end of last year, providing the group with earnings visibility over the coming years.
To further bolster its future earnings, Teh said Avaland has RM1.2 billion worth of projects in the pipeline, which are expected to be launched in the current half.
Among them is Alora Residences, the first phase of the 2Fifth Avenue development, which is slated for launch this month and will comprise 770 serviced apartment and eight retail units, with a gross development value (GDV) of RM552 million.
The group is also targeting to launch its Japanese-inspired Amika Residences in September, which will be located adjacent to Alira Subang Jaya. It will have 493 units of serviced apartments, with a total GDV of RM452 million.
Teh added that Avaland’s landbank remains robust at 196 acres with an estimated GDV of RM12 billion, including its latest land acquisitions in Bangi, Seputeh and Taman Desa, which should sustain its earning over the next decade.
Avaland was listed on the main Bursa market on April 6, 2015, with among its notable projects being One City in USJ, Sky Park and Lakefront in Cyberjaya, and the over 400-acre Cybersouth township in Dengkil.
