Property developer, Tropicana Corporation Berhad (“Tropicana” or “the Group”) believes that there will still be demand for landed properties and integrated developments in prime locations with good accessibility, wide range of amenities and attractive pricing despite a backdrop of cautious global and local economic outlook.
In this regard, Tropicana will continue to focus on its market-driven strategy for 2H FY2019, rolling out a series of new projects amounting to a GDV of approximately RM3.0 billion within its existing and new signature townships which are expected to drive stronger performance and bring the Group to its next phase of growth. These existing and new signature townships include the latest residential phase Elemen Residences at Tropicana Aman, Kota Kemuning which is the first phase of lakeside homes within the masterplan. Meanwhile in Subang Jaya, the Group will be launching its first commercial phase at Tropicana Metropark, comprising retail lots and serviced apartments.
Riding on this momentum, plans have also been established to launch the final phase of Tropicana Gardens, Edelweiss SOFOs and serviced residences at Tropicana Indah. Demonstrating its disciplined approach in fulfilling consumer demands, another key project that is expected to launch in the 2H FY2019 is Tropicana Miyu, low-density condominiums strategically located at Jalan Harapan, Petaling Jaya.
The Group will also be launching its maiden development in Genting soon with the introduction of the first phase of Tropicana Grandhill, Genting. All of these are expected to contribute positively to the Group’s earnings in the coming years.
Meanwhile, the Group recently announced its unaudited financial results for the second quarter ended 30 June 2019 (“Q2 2019”). For the second quarter under review, Tropicana recorded a 6.4% increase in revenue to RM299.5 million compared with RM281.4 million registered in the corresponding quarter last year, underpinned by higher progress billings across some of the Group’s key on-going projects.
However, Tropicana recorded a lower PBT of RM56.6 million mainly attributable to the recognition of a one-off fair value gain of RM30.2 million on one of the Group’s investment properties in the preceding year. Meanwhile, the Group’s net profit rose 2.7% from the corresponding quarter in FY2018 to RM39.0 million. Tropicana’s earnings per share also increased from 2.60 sen in Q2 of 2018 to 2.72 sen in Q2 of 2019.
For the first six months of FY2019, Tropicana recorded a revenue of RM509.2 million and PBT of RM77.6 million while its net profit increased 0.8% to RM85.1 million compared to the RM84.4 million registered in the corresponding period last year.
Moving forward, the Group remains well-positioned to deliver sustainable earnings performance with unbilled sales standing at healthy level of RM830.6 million, anchored by 14 on-going projects and strategic approaches to unlock the value of over 1,071 acres of prime landbank located at strategic locations across the Klang Valley, Genting and Southern regions with potential GDV of RM48.6 billion.