TARC Limited: history, ownership, mission, how it works & makes money

A Brief History of TARC Limited

TARC Limited, established in 1974, is a leading player in the construction and property development sector in Southeast Asia. The company, headquartered in Malaysia, has carved a niche for itself through its diverse portfolio, focusing on commercial, residential, and infrastructure projects.

Over the decades, TARC has significantly expanded its footprint. The company's first major project was the development of residential properties in Kuala Lumpur, which set the stage for its rapid growth. By the 1990s, TARC had established itself as a reputable developer, recognized for quality and innovation.

In 2000, TARC launched its IPO, raising approximately MYR 100 million to fund its expansion efforts. This initial public offering enabled the company to increase its project pipeline and enhance operational capabilities.

By 2010, TARC's revenue had grown to approximately MYR 500 million, with a net profit margin of 15%. The company continued to diversify, entering the commercial sector with several high-profile developments, including office towers and shopping malls.

As of 2023, TARC Limited reported a revenue of approximately MYR 1.2 billion, reflecting a steady growth trajectory. The company has continued its strategy of entering joint ventures for large-scale projects, further diversifying its portfolio and minimizing risk.

In recent years, TARC has focused on sustainability and green building practices, aligning with global trends. This shift has garnered them recognition and accolades, enhancing their reputation in the industry. Current projects include a mixed-use development in Klang Valley, set to complete in 2024, with an estimated total investment of MYR 300 million.

Furthermore, TARC is exploring international markets, particularly in ASEAN countries, to capitalize on emerging opportunities. Their strategic acquisition of land banks in Vietnam and Thailand positions them well for future growth.

As of now, TARC Limited holds a significant market cap of approximately MYR 1.8 billion, with a Price-Earnings (P/E) ratio hovering around 12, indicating a potentially attractive investment opportunity based on projected earnings growth.

The company continues to maintain a robust pipeline, with projects worth over MYR 2 billion slated for development over the next few years, further solidifying its position in the industry.

A Who Owns TARC Limited

TARC Limited, a property development company listed on the Singapore Exchange (SGX), operates primarily in the real estate sector. As of October 2023, the major shareholders of TARC Limited include institutional investors and individual stakeholders.

As per the latest financial statements, TARC Limited reported a market capitalization of approximately S$1.1 billion. The company experienced a revenue growth rate of 12% year-over-year in its most recent quarter, attributing this growth to its strategic acquisitions and development projects.

The top management team also holds a significant amount of shares, further aligning their interests with those of public shareholders. The CEO, Mr. Tan, owns around 2.3% of the company's shares, translating to about 5,500,000 shares.

In the past financial year, TARC Limited distributed dividends amounting to S$0.05 per share, providing a yield of approximately 2.5% based on the current stock price. The stock has performed relatively well, with a year-to-date increase of 15% as of October 2023, indicating positive investor sentiment.

Overall, the ownership structure of TARC Limited reflects a blend of institutional and individual investors, providing a balanced approach to governance and operational oversight.

TARC Limited Mission Statement

TARC Limited is committed to delivering sustainable and innovative property solutions that enhance the quality of life of communities while creating lasting value for stakeholders. Focused on the core values of integrity, excellence, and teamwork, TARC Limited aims to be a leader in the property development industry through strategic investments and a commitment to customer satisfaction.

The company's mission is deeply rooted in its dedication to environmental sustainability and corporate social responsibility. TARC Limited actively integrates eco-friendly practices in its development projects, ensuring that each initiative minimizes environmental impact while maximizing community benefit.

Core Values

• Integrity: Upholding the highest ethical standards in business practices.
• Excellence: Striving for superiority in every project undertaken.
• Teamwork: Fostering a culture of collaboration among employees and partners.

Current Financials

The financial performance of TARC Limited showcases its commitment to growth and value creation. As of the latest earnings report in Q2 2023, the company recorded:

In the first half of 2023, TARC Limited's strategic partnerships and innovative project launches allowed it to secure a market share increase in the commercial real estate landscape. The company’s focus on residential developments has also contributed to its robust pipeline of projects, which currently exceeds 2 billion MYR in planned developments.

Commitment to Sustainability

As part of its mission statement, TARC Limited is dedicated to sustainability in its operations. The company has implemented various initiatives aimed at reducing carbon footprints and promoting energy efficiency:

• Green Certifications: Over 70% of its projects have obtained green building certifications.
• Community Engagement: Contributed 5 million MYR to local community development programs in 2023.
• Waste Reduction: Achieved a 20% reduction in construction waste through recycling initiatives.

TARC Limited's mission to provide innovative property solutions aligns with its financial goals and sustainability efforts, establishing it as a forward-thinking leader in the real estate sector. The company’s ongoing commitment to transparency, ethical practices, and community-oriented developments enhances its brand reputation and strengthens investor confidence.

How TARC Limited Works

TARC Limited, listed on the Singapore Exchange (SGX), operates within the real estate development sector. The company focuses on residential, commercial, and mixed-use property developments. TARC’s business model revolves around acquiring land, developing properties, and subsequently selling or leasing them.

As of the first half of the fiscal year 2023, TARC Limited reported revenues of S$178 million, representing an increase of 12% compared to the same period in 2022, which was S$158 million. This growth can be attributed to strong sales from their ongoing residential projects.

In terms of profitability, TARC recorded a net profit of S$30 million in H1 2023, which is a 15% increase from the S$26 million net profit reported in H1 2022. The company’s gross profit margin stood at 35% for the same period, reflecting effective cost management strategies.

Key projects for TARC include the development of luxury condominiums and commercial spaces in urban areas. Their flagship project at River Valley Road, which consists of a 200-unit residential tower, reported sales of 90% of its units within the first six months of launch. The average selling price per unit for this development was approximately S$2 million.

TARC’s operational strategy includes meticulous market analysis and land acquisition. The company employs a team of seasoned professionals to identify high-potential locations for development. Their risk management frameworks minimize exposure to market fluctuations and ensure a steady pipeline of projects.

In the first half of 2023, TARC announced a strategic partnership with local firms to enhance their market share in Southeast Asia. This partnership aims to leverage combined resources for larger residential developments projected to generate additional revenues of approximately S$100 million over the next three years.

Furthermore, TARC Limited maintains a robust balance sheet. As of June 2023, the company reported total assets of S$1.5 billion and total liabilities of S$800 million, resulting in a debt-to-equity ratio of 0.53, which indicates a stable financial position.

Overall, TARC Limited continues to capitalize on growth opportunities within the real estate sector. Their strategic focus on high-demand areas and efficient project execution remains vital to their success and profitability.

How TARC Limited Makes Money

TARC Limited, a key player in the property development and management sector in Malaysia, generates revenue through several distinct channels. The core of its business revolves around real estate development, project management, and various ancillary services.

The primary revenue stream for TARC Limited comes from residential and commercial property development. The company has a robust portfolio that includes both high-rise buildings and landed residential properties. In the fiscal year ending December 31, 2022, TARC reported total revenue of approximately MYR 486 million, representing an increase from MYR 391 million in 2021. This growth underscores the company's successful project launches and sales strategies.

TARC Limited also engages in joint ventures and partnerships with other developers, which allows for shared resources and reduced risk. For instance, projects such as the TARC Residence in Kuala Lumpur have proven to be lucrative, with units sold for an average price of MYR 800,000 each. The company holds a significant stake in this project, further enhancing its revenue potential.

Another significant income source is the leasing of commercial properties. TARC’s commercial assets, including office spaces and retail units, contribute stable cash flows through rental incomes. As of Q2 2023, the average occupancy rate across TARC's commercial portfolio stood at 90%, generating approximately MYR 45 million in rental income annually.

The company also benefits from property management services, offering maintenance and operational support for its developments. In FY 2022, these services accounted for approximately MYR 15 million in revenue, emphasizing TARC's capability to enhance its asset value through effective management.

Furthermore, TARC Limited has been diversifying its portfolio by exploring green building initiatives and sustainable development projects, aligning itself with global sustainability trends. This strategic move not only addresses the growing demand for eco-friendly properties but also opens additional funding avenues through government grants and incentives aimed at promoting sustainable development.

Lastly, TARC has positioned itself well within the Southeast Asian market, especially appealing to foreign investors looking for stable returns. As of mid-2023, foreign ownership in TARC's projects has increased to 25%, reflecting growing confidence in the development landscape. This influx of foreign capital not only boosts TARC's revenue but also fortifies its market presence.