PETALING JAYA: Tropicana Corp Bhd will be threading cautiously this year given the soft property market, said its group chief executive officer Datuk Yau Kok Seng.
Speaking to StarBiz on the sidelines of the launch of its first International Baccalaureate Scholarship Programme in Malaysia, Yau said the company would be selective in launching its properties in 2016 although its 2015 sales target had exceeded the previous year’s.
“We do know that we exceeded 2014 sales figures while last year’s numbers are being prepared for the fourth-quarter results,” he said.
Tropicana Foundation, a charity organisation formed by Tropicana Corp and Lasallian Asian Partnerships for International Schools, had made two donations of RM1.5mil, respectively, to the St Joseph’s Institution International School Malaysia in Petaling Jaya.
Although Tropicana had yet to set a sales target for 2016, it was likely to be in the region of RM1.2bil at least, seeing it was satisfied with last year’s results.
For the quarter ended Sept 30, 2015, the property developer had charted more than a three-fold increase in net profit to RM151.8mil compared with a year ago on gains from the disposal of a subsidiary.
Revenue, however, decreased 18.7% to RM244.6mil compared with the same period the year before on lower work in progress for it property development segment as a number of the projects were still in their infancy.
Despite a less vibrant market, Tropicana made new sales of RM1.3bil, with unbilled sales at a record RM3.1bil for the nine-month period.
“At this point, we have unbilled sales of at least RM3.4bil, which will tide us over the next two to three years,” Yau said.
The scholarship will have a total of RM3mil in funds in its founding year and will in August offer fee waivers of up to 100% to 12 qualified applicants entering Year 12 International Baccalaureate Diploma, a two-year educational programme which would help students gain access to universities around the world.