KUALA LUMPUR: Avaland Bhd is expected to post property sales of between RM500 million and RM700 million in its financial years ending 2024 and 2025.
RHB Research said this will indicate a growth of 41 per cent and 27 per cent respectively.
Avaland, the firm said, had seen a notable enhancement in earnings and profit margins over the past two quarters following a significant operational overhaul.
"Avaland (previously known as MCT Bhd) has been under many investors' radar largely due to its poor earnings over the last few years coupled with the slowdown in the property market.
"Given the change in the management team, the company has started seeing a convincing earnings turnaround since two quarters ago. Teh Heng Chong was appointed as CEO in March 2019, and the company changed its name to Avaland in July 2023.
"Teh has been the instrumental person in driving the restructuring," RHB Research said today.
The firm said with the right products and strategies, Avaland should drive strong earnings momentum ahead.
Recent projects like Aetas Damansara, Alira Subang Jaya, Sanderling in Cyberjaya, and Casa Embun in Cybersouth have garnered impressive take-up rates of 97 per cent, 83 per cent, 74 per cent and 71 per cent respectively.
"Launched within the last one to two years, these developments boast refreshing designs, Avaland's management appears to have accurately gauged the market by offering larger residential units, aligning well with the post-pandemic trend.
"Aetas, positioned as a mid-high end project, aptly meets the current demand in the market," RHB Research said.
Avaland's management intends to expand by acquiring additional land for specialised developments, including Amika Residences, Anja in Bangi and Aetas in Seputeh.
The projects will collectively boost a gross development value of RM1.33 billion.
