KUALA LUMPUR: Tambun Indah Land Bhd plans to launch two new projects in mainland Penang with a combined gross development value (GDV) of RM300 million in the second half of 2015.

Raintree Park 2 comprises duplex villas, double-storey terraces and semi-detached houses with RM205 million in GDV; while Avenue Garden features 17-storey serviced apartments with 312 units worth RM95 million in GDV.

“The high take-up rate of 89.2% across our ongoing projects of RM1.2 billion, especially in the challenging environment, demonstrates the sustained demand for affordable properties in mainland Penang," its managing director Teh Kiak Seng said in a statement yesterday.

Encouraged by this, Teh expressed his optimism that the new launches would be taken up positively by prospective buyers.

Tambun Indah is also expected to start reaping rental income from GEMS International School next month, which will complement the billings from its property development segment.

Tambun Indah yesterday reported a 32.8% decline in net profit for the second quarter ended June 30, 2015 (2QFY15) to RM17.09 million or 4.05 sen per share, from RM25.44 million or 6.34 sen per share a year ago, on the back of lower revenue of RM60.01 million compared with RM127.96 million in 2QFY14.

For the six-month period (1HFY15), the group's net profit fell 7.4% to RM47 million or 11.14 sen per share from RM50.73 million or 12.75 sen per share a year ago.

Revenue was lower at RM190.42 million in 1HFY15 compared with RM239.98 million in 1HFY14 due to timing of revenue recognition.

As at June 30, 2015, the group's unbilled sales amounted to RM408.1 million, which will contribute positively to the group's earnings for the next two to three years.

Tambun Indah shares closed unchanged at RM1.43 yesterday, with a market capitalisation of RM606.15 million.

This article first appeared in digitaledge Daily, on August 27, 2015.