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Tuesday, February 12, 2008

TTDI sees record earnings this year

TTDI Development Sdn Bhd expects a record after tax earnings this year, helped by sales of current projects and those from new launches, its chief said.

It expects profit to jump 36 per cent to RM85 million in the year to December 31 2008. Revenue should triple to RM600 million.

The company made RM62.5 million in after tax profit on top of RM204 million revenue last year.

"We are confident of achieving our target, largely driven by several new developments taking shape this year," group managing director Datuk Johan Ariffin told Business Times in an interview.

In 2006, TTDI posted an after tax profit of RM31.4 million, on the back of a RM162 million revenue.

The developer also aims to keep gearing, a measure of debt, below 0.5 times. It has debt of RM142 million, which is 0.3 times its shareholders' funds currently.

TTDI has 197.6 hectares in Kuala Lumpur and Shah Alam. It is developing some 14 commercial and residential projects, plus mixed developments, worth more than RM6 billion.

Its latest product and also its first high-end integrated residential and commercial project is Platinum Park in Kuala Lumpur. The RM4 billion project will be developed over five to eight years on a 3.64ha site.

Johan said TTDI is expected to sign a second enbloc sale for another tower at Platinum Park this year, worth some RM550 million.

Platinum Park comprises seven towers. The first tower, a 50-storey office block, was sold to the Federal Land Development Authority (Felda) for RM640.7 million last month.

TTDI aims to also launch seven new projects this year, with a combined value of RM2 billion.

There are The Valley TTDI in Ampang; Jayamas II in TTDI Jaya, Shah Alam; phase 1 of TTDI Kajang, TTDI Puchong and TTDI Alam Impian; phase 3 of Laman Seri and Laman Seri Business Park in Section 13, Shah Alam.

"These projects will contribute positively to the company's earnings this year. Alam Impian, which will be launched in the second quarter, will contribute RM52 million," Johan said.

Johan said the phase 3 bungalows of Laman Seri are already 54 per cent sold even before the launch. It anticipates a similar success for Laman Seri Business Park, which will generate RM143 million in sales this year.

TTDI has also identified land in real estate hotspots like Penang and Johor to take advantage of rising demand.

"Several projects have and are being studied but, to date, we have not concluded any," Johan said.

TTDI also has long term plans to venture abroad.

Tan Sri S.M. Nasimuddin S.M. Amin, the company's chairman, told Business Times the company is mulling niche developments in Singapore, Indonesia and Vietnam in the near future.

"We are looking at various plans to expand and it includes developing landbank jointly with strategic local partners overseas," Nasimuddin said.

By New Straits Times (by Sharen Kaur)

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