Symphony Life eyes RM500 million sales in FY16

SHAH ALAM: Property developer Symphony Life Bhd, which is deferring some of its new property launches, is targeting sales worth RM500 million for the financial year ending March 31, 2016 (FY16), down 29% from RM707 million in the year before.
“This year we prefer to defer some of our (new) launches, due to the weak market. We plan to focus more on existing launches (developments). We will assess it along the way, as the market develops,” its COO sales and marketing Stewart Tew told reporters after the group’s AGM here yesterday.
He said sales for FY16 will be supported by ongoing projects and property launches as well as unbilled sales of RM700 million.
“Although the market is on the weaker cycle at the moment, it is still a good time to buy property at this point of time because in this current market, you will get a better chance of getting a good deal,” he added.
Tew said Symphony Life’s current projects include TWY@Mont Kiara in Kuala Lumpur, Elevia Residences in Puchong, Selangor, and Tijani@Raja Dewa in Kota Baru, Kelantan.
He said the TWY@Mont Kiara project, with a gross development value (GDV) of RM400 million, comprising 484 units condominiums, has achieved a take-up rate of more than 80%, while Elevia Residences, which offers a combination of villas and 25 storeys of condominium units with a GDV of RM120 million, has to date achieved a take-up rate close to 70%.
The group recently launched Tijani Raja Dewa in Kota Baru, a combination of terrace houses and semi-detached houses and a block of condominiums with a GDV of RM160 million for the first phase of development. To date, the project has a take-up rate of over 40% for the landed units.
“The rest of the (project) launches, we will be doing it next year and in 2017,” Tew said.
He said Symphony Life’s residential development on 2.6 acres in Subang Jaya and Rumah Selangorku townhouse projects on 25 acres in Section U10 Shah Alam are among projects in the launch pipeline.
On its township development in Sungai Long, Kajang, which was delayed due to the Selangor government’s plan to acquire part of the land for the Langat 2 project and a proposed new highway, its CFO Hazurin Harun said he expects the development to begin in 2017 and 2018.
“We have decided to postpone the development of this land to make sure that the highway comes up first, so that then we can plan our development better,” he added.
According to the company’s preliminary projection, the 420-acre Sungai Long development may carry a GDV of RM8 billion.
Commenting on the group’s financial performance for FY16, Hazurin said the group expects a lower revenue for 2016, as majority of its projects’ revenue would be recognised in 2017 and 2018.
“Revenue (for FY16) would probably lower than last year (FY15). Although our unbilled sales are high at RM700 million, a lot of our projects revenue will be recognised in 2017 and 2018. Currently, the developments are all in the foundation stage,” he added.
For the first quarter ended June 30, 2015 (Q1FY16), its net profit fell 81.47% to RM2.04 million, from RM11.01 million in the previous corresponding quarter, while revenue dropped 51.65% to RM40 million, from RM82.73 million previously.