KUALA LUMPUR (June 19): Sabah-based integrated property developer KTI Landmark Bhd (KL:KTI), which was listed on Wednesday, said it plans to launch two new residential projects in Sabah by 2028, with a combined gross development value (GDV) of RM599.6 million.
The first project is a three-phase affordable 310-unit development of double-storey terrace houses in Sandakan, with an estimated GDV of RM107.9 million, while the second project is a 39-storey 1,269-unit apartment in Kota Kinabalu, with a GDV of RM491.7 million.
Two phases of the first project, which is to design and build together with the Sabah Housing and Town Development Authority, are expected to launch next month, KTI executive director Wilson Loke told a press conference after the company’s ACE Market listing ceremony.
The two projects will provide earnings visibility of up to five financial years, the company noted.
Additionally, KTI's current unbilled sales amounting to approximately RM300 million will also provide earnings visibility for up to four financial years, according to KTI chief financial officer Chaw Ken Vun.
Unfazed by flat debut, company eyes long-term growth
Although KTI opened flat in its trading debut at 30 sen apiece, Loke said the price is acceptable considering the challenging property sector.
“We look at the long run. Even though the opening is not fully green, we are okay. The property sector is a more challenging sector among all the other sectors, and we have been remaining resilient for the past two to five years,” Loke said.
“I would say that a property counter to me is all about whether the company is trustworthy or not. I think trust is a very notable thing in our industry, especially in property and also in Sabah,” he said.
Meanwhile, the group is also optimistic about the outlook for Sabah's property market, noting a steady increase in uptake.
“In terms of our own property uptake, we see that it's on a steady increase. Usually for property markets, throughout the whole year, the first half will usually be slow, but it will pick up [towards the second half of the year],” he noted.
For the financial year ended Dec 31, 2023 (FY2023), KTI’s net profit rose 31.9% to RM13.8 million, from RM10.5 million a year ago, on higher gross profit.
FY2023 revenue, meanwhile, increased 6.5% to RM120.2 million, from RM112.9 million for FY2022.
The net margin for FY2023 also improved to 11.5%, from 9.3% a year ago.
While focusing on property development in Sabah, the group also plans to expand in other parts of Malaysia if such opportunities arise.
“For now, we just focus on Sabah. If opportunities arise [in other parts of Malaysia], then we will look at them and let the board come to a decision,” Loke added.