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Home / 2014: Annual Report: Chairman’s Message

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Dear Shareholders,

The Malaysian property market continued to be challenging in 2014, as the cooling measures introduced by the government took effect. Despite the trying conditions, I am pleased to report that the Group was able to maintain its steady expansion course, marking several milestones during the year. We continued to experience encouraging response to our existing and new project launches of affordable housing.

On behalf of the Board of Directors, I am pleased to present the Annual Report and Audited Financial Statements for the financial year ended 31 December 2014 (FY2014).

Financial Performance

Revenue improved 24.0% to RM466.8 million from RM376.4 million a year ago, as the Group registered higher take-up rates and good construction progress in ongoing projects.

FY2014 profit before tax increased 17.4% to RM138.2 million against RM117.7 million in FY2013. Following the acquisition of the remaining equity interest in Palmington Sdn Bhd and Tambun Indah Development Sdn Bhd in November last year, the Group’s net profit rose 57.1% to RM102.1 million from RM65.0 million previously on higher contributions from the Pearl City development. Basic earnings per share rose to 25.2 sen per share compared to 19.8 sen per share in FY2013.

The Group’s total borrowings increased to RM152.9 million compared to RM98.2 million a year ago, primarily due to land bank acquisitions and project financing requirements.

Nonetheless, our balance sheet remained robust at year end, with shareholders’ equity rising to RM397.0 million from RM310.1 million a year ago. Cash and bank balances rose to RM138.1 million against RM125.9 million previously.

The Group’s net gearing ratio stood at 0.037 times. This should position us well to fund additions to our land bank when appropriate, and to undertake growth strategies for the future.



An interim single-tier dividend of 3.0 sen per share in respect of FY2014 was paid on 16 February 2015.

The Board had also proposed a final single-tier dividend of 6.7 sen per share for shareholders’ approval at the forthcoming Annual General Meeting. Together, the total dividend payable for FY2014 will be 9.7 sen per share, representing a dividend payout of approximately RM40.9 million which constitutes 40.0% of the Group’s net profit.


For the second consecutive year, Tambun Indah was selected to Forbes Asia’s list of “200 Best Under A Billion” from 17,000 public listed companies in the Asia Pacific; with sales growth, earnings growth and return on equity being the criteria for selection.

We are honoured to be a recipient of the award, and will resolve that the Group’s growth be sustained.

Future Outlook

The Penang property market is expected to remain reasonably robust, on the back of healthy fundamentals, such as the state’s pro-business policies, population demographics, and increasing domestic and foreign investments which translate to job creation.

Accordingly, the Group plans to capture the growth opportunities by continuing to build quality and affordable homes, constantly seeking new land bank, and strengthening its reputation as a property developer of choice.

Corporate Social Responsibility (CSR)

The Group’s CSR activities reflect our philosophy of implementing sound business practices, assisting the communities in which we operate, and striving to shape a sustainable society and environment.

Our CSR initiatives are highlighted in the Statement on Corporate Social Responsibility in this Annual Report.

Corporate Governance

Your Board of Directors continues to uphold and implement high standards of corporate governance throughout the Group to ensure the sustainable growth of the business and the continued creation of shareholder value. These measures are detailed in the Corporate Governance Disclosure in this Annual Report.


On behalf of the Board, I would like to express sincere appreciation to our business associates, the local authorities, and our valued customers for their cooperation and support.

To management and staff, we acknowledge with thanks your dedication and hard work during the year. In addition, I am grateful to my fellow directors for their continuing guidance and wise counsel.

In closing, we thank our shareholders for their kind support and confidence in the Group.

With the continued support from our stakeholders, we look forward with optimism to another year of sustainable growth.

Thank you.
Lai Fook Hoy