Teladan Setia’s 1Q profit falls 12%; aims to launch properties worth RM1.1 bil in GDV

KUALA LUMPUR (May 12): Teladan Setia Group Bhd’s net profit fell 12.28% to RM8.31 million for the first quarter ended March 31, 2023 (1QFY2023) from RM9.47 million in 1QFY2022, mainly due to higher administrative expenses.

As such, the group’s earnings per share for the quarter slipped to 1.03 sen from 1.18 sen a year earlier, said the Melaka-based property developer in its filing on Friday (May 12).

Revenue, in contrast, increased by 4.6% to RM61.61 million from RM58.98 million, mainly derived from Taman Desa Bertam Phase 3A and 3B and Taman Bertam Heights Phase 1B, as well as the new launching of Taman Desa Bertam Phase 4A.

The group reported a total property sale of RM51 million in 1QFY2023. In the financial year ended Dec 31, 2022, Teladan Setia recorded RM278.6 million in property sales, which was then a two-fold increase from the RM115.9 million sales in the preceding year.

The group stated that the positive market response for its ongoing Taman Desa Bertam Phase 4 project and Taman Bertam Heights Phase 1B, with take-up rates of 32.9% and 97.1% respectively, had contributed to the total property sales in 1QFY2023.

Nevertheless, Teladan Setia acknowledged the challenges facing the residential property market amid the inflationary pressures and the potential interest rate hikes that could dampen consumer sentiments.

This year, the group plans to launch properties with an accumulated gross development value (GDV) of RM1.1 billion.

This includes projects with GDV of RM535.5 million in Melaka and RM574.5 million in a new high-rise service apartment project in Seri Kembangan, which is situated near the Serdang KTM station and the Mines Shopping Centre.

In addition, it is also actively accumulating strategic land parcels that can yield potential commercial value for future development, said the group.

As at end-March 2023, Teladan Setia’s total undeveloped land bank in Melaka stood at 983.4 acres.

On Friday, Teladan Setia, which had proposed to transfer its listing from the ACE Market to the Main Market, closed flat at RM1.17. This gives the group a market capitalization of RM946.08 million.