It is well known for its flagship Pearl City township development in Seberang Perai, Penang, is in talks with three landowners to acquire more land in Seberang Perai for development and is confident of concluding the deals by the end of 2013.
The group is looking for township land.
prospects remain intact despite the collapse of the Batu Muang interchange under the Second Penang Bridge project. The Penang Second Bridge will nevertheless be completed and opened in six to 12 months in a worst case scenario.
The existing established industrial parks will still create a natural demand for housing, the state government will continue to spearhead the Batu Kawan industrial park and plans for a Premium Outlet and investments by industrial players will remain unchanged.
Apart from Penang mainland, Tambun Indah is also scouting for land on the outskirts of Kuala Lumpur such as Kajang, Banting and Rawang for township projects.
Tambun Indah has no plans to venture into developing properties in Iskandar Malaysia, Johor.
Other developers include Global Oriental Bhd and Wing Tai Malaysia Bhd.
It is currently (April 2013) sitting in a net cash position of about RM100 million, following the completion of a rights issue exercise that raised RM44 million in June 2012. Its net gearing ratio of up to 0.5 times allows room for the group to raise another RM110 million in borrowings.
The group's ongoing (April 2013) projects are worth RM1.5 billion in gross development value (GDV), thus providing earnings visibility.
It plans to spend rm100 million to rm200 million in capex for 2013 to buy more land. It plans to add about 200 acres to 300 acres of land to the current (June 2013) 562 acres of underdeveloped land in Seberang Perai Selatan.
In 2012, Tambun Indah posted a 75% growth in net profit to RM40.81 million from RM23.38 million a year ago, while revenue rose 55% to RM296.95 million from RM191.84 million.
The group adheres to a dividend payout policy of 40%-60% of its net profit each year.
Teh also has no plans to pare down his 46.7% stake in Tambun Indah.
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