Avaland back in black in Q2
KUALA LUMPUR: Avaland Bhd has returned to the black with a net profit of RM11.12 million in the second quarter (Q2) ended June 30, 2023 versus a net loss of RM7 million in Q2 2022.
Its revenue for the quarter more than doubled to RM113.84 million from RM53.5 million in the same period last year.
The company said the improved performance came on the back of increased contributions from ongoing projects namely Aetas Damansara, Alira Subang Jaya and Casa Bayu Townhouse.
For the cumulative six months, Avaland posted a net profit of RM11.25 million from a net loss of RM19.19 million in the corresponding period last year.
Its revenue for 1H23 surged 106.7 per cent year-on-year (YoY) to RM190.43 million versus RM92.12 million in 1H22.
Chief executive officer Teh Heng Chong said its efforts to strengthen sales performance came to fruition as sales increased by 7.8 per cent to RM267 million in 6M2023 from RM247 million in the previous corresponding period last year.
"The improved sales were attributed to the project launched in the second half of 2022, namely Sanderling, Casa Embun and Phase 2 of Alira Subang Jaya, which have take-up rates of 50 per cent, 54 per cent and 66 per cent respectively.
"Our on-going projects namely Aetas Damansara and Phase 1 of Alira Subang Jaya also registered healthy take-up rates of 90 per cent and 89 per respectively as at June 30, 2023.
"We expect an acceleration in construction progress for both projects in the coming months and target to handover Aetas Damansara in December 2024 and Alira Subang Jaya in July 2025," he said.
As at June 30, Avaland's unbilled sales grew 18 per cent to RM852 million from the RM720 million recorded as at December 31 last year, providing it with earnings visibility over the coming years.
"To further bolster our future earnings, the group has RM1.2 billion worth of projects in the pipeline to be launched in the second half of 2023.
"Alora Residences, the first phase of the 2Fifth Avenue development, is slated to launch in August 2023 and will comprise 770 serviced apartments and 8 retail units with total gross development value (GDV) of RM552 million."
It is also targeting to launch the Japanese-inspired Amika Residences in September 2023 which will have 493 units of serviced apartments with neighbourhood retail units with a total GDV of RM452 million and is located adjacent to Alira Subang Jaya.
Avaland has a landbank of 79.32 hectares with an estimated GDV of RM12 billion, which will sustain its earnings over the next 10 years.