Titijaya’s net profit improves in Q2

Yesterday, a block of 10.2 million Titijaya shares, or 2.5% of the company, changed hands in an off-market trade at RM1.72. This was on the back of another off-market transaction of 15 million Titijaya shares done at RM1.76 on Oct 18. Sources said the buyer of the blocks of shares was either CREC or some other related China parties.

PETALING JAYA: Property developer Titijaya Land Bhd’s net profit for the second quarter to Dec 31, 2016 increased 15.98% to RM20.45mil on the back of a 23.38% drop in revenue to RM80.67mil, driven by higher profit recognitions from its H2O, 3Elements and Embun projects. 

Earnings per share (EPS) rose to 5.41 sen from 4.98 sen previously. 

On a six month basis, its net profit was up 5.82% to RM40.49mil. Revenue decreased slightly to RM188.22mil from RM189.81mil previously. Hence, its EPS dropped slightly to 10.52 sen from 10.8 sen. 

In a filing to Bursa, Titijaya said that the flattish profit after tax trend line was in-line and to be expected as there was no undertaking of any significant major property launches during the financial period.

Moving forward, Titijaya said that the current property market is undergoing a consolidation period. 

“Nonetheless, the board believes that the Group will be able to capitalize on future opportune land-banking activities and the upcoming development launches that will enhance the group’s value incrementally.

Late last year, China Railway Engineering Corp (M) Sdn Bhd (CREC), through its wholly-owned subsidiary CREC Development (M) Sdn Bhd (CRECD), entered into a shareholders agreement with Titijaya for a proposed development with a gross development value of RM2.1bil. 

CREC, a wholly-owned subsidiary of one of the world’s largest construction companies, Shanghai and Hong Kong-listed China Railway Group Ltd, has also tied up with Iskandar Waterfront Holdings and the Ministry of Finance Inc, as the master developer for the RM200bil Bandar Malaysia project.