Titijaya lowers property sales target to RM400m

KUALA LUMPUR: Titijaya Land Bhd has revised downwards its property sales for the current financial year ending June 30, 2016 (FY2016) to RM400mil compared with RM500mil in FY2015.

Deputy group managing director, Lim Poh Yit, said on Wednesday the group was adopting a cautious and conservative stance following the weak market sentiment as well as the current economic uncertainties.

"We planned more aggressive launches earlier but had scaled down a bit following the uncertainties. 

"Some of the contributions for next financial year would be from the unbilled sales of FY2015 launches," he said at a media briefing on FY2015 financial results here.

The property group plans to launch three projects for the current financial year, namely H2O, Block B project in Ara Damansara, Emporio Office in Shah Alam and Cheras residential, said Lim.

"The group, despite the lower sales target, is still confident of maintaining its profit, supported by unbilled sales of RM732mil for last financial year, which could last for two to three years," he said.

He said the group has an undeveloped landbank of 175 hectares with an estimated gross development value of RM8.6bil.

"The (sites of the) land are mostly in the commercial areas in Klang Valley and Penang island. This will give us an added advantage against competitors," he said. 

On the current economic development, group managing director, Tan Sri Lim Soon Peng, said the weaker ringgit was not all bad for Malaysia as it had boosted foreign interests in the local property market and attracted more tourists to the countries.

The ringgit depreciation also did not impact the group's construction costs as almost 90% of the materials were sourced locally, he said. - Bernama