Damansara Realty 3Q net profit doubles to RM3.85m


  • Corporate News
  • Tuesday, 12 Nov 2019

Damansara Realty Bhd’s outstanding profit growth is attributed to lower operating expenses, improved operational efficiency and contributions from its Central Park joint development project in Johor Bahru with Country Garden Group.

KUALA LUMPUR: Damansara Realty Bhd's net profit rose by 106% to RM3.85mil in the third quarter ended Sept 30,2019 from RM1.87mil a year ago, boosted by other income and share of profit of an associate company.

The property company reported on Tuesday that its revenue fell by 13.6% to RM65.88mil from RM76.33mil a year ago. Its earnings per share were 1.21 sen compared with 0.59 sen.

DBhd said its integrated facilities management (IFM) recorded a decline in reveue at RM201.31mil compared with RM211.31mil a year ago. This was mainly due to lower occupancy at the Rapid Temporary Executive Villa, Pengerang, Johor and expiration of its maintenance contract in KLIA.

“As a result of expiration of the contracts, profit for the segment decreased by RM3.95mil to RM7.39mil, ” it said.

As for the property and land development, its revenue declined to RM5.74mil from RM6.90mil mainly due to lower units sold in 3Q FY19. The segment recorded a profit of RM6.25mil compared with a loss last year mainly due to contributions from the Central Park joint venture development with Country Garden in Johor Bahru.

As for the project management consultancy, the segment's revenue fell by 69% ot RM4.50mil due to the absence of contribution by Healthcare Techical Services Sdn Bhd which was disposed of in 2018.

For the nine months ended Sept 30,2019, its net profit jumped 184% to RM9.31m from RM3.28mil in the previous corresponding period. However, its revenue fell by 7% to RM206.11mil from RM221.81mil.

“DBhd’s outstanding profit growth is attributed to lower operating expenses, improved operational efficiency and contributions from its Central Park joint development project in Johor Bahru with Country Garden Group.

“Our business focus moving forward will be on high-growth markets and higher-margin projects for continued profitability and to sustain our growth track record, ” said DBhd group managing director, Brian Iskandar Zulkarim.

DBhd's property and land development segment saw higher contributions to revenue last year due to sales of the remaining shop lots in Aliff Square 2, Johor Bahru, which is now fully sold.

“While we look to renew our existing IFM contracts, we’ve successfully secured new IFM contracts worth RM133.91mil as at November 2019 from our tender book value of nearly RM500mil, ” he added.

In September, DBhd had secured a contract to supply skilled cleaning operatives worth RM21.2mil to one of MALAYSIA AIRPORTS HOLDINGS BHD (MAHB) subsidiaries.

“These secured contracts speak volumes for our committed efforts in expanding our services beyond the traditional facilities management engineering services, ” he added.

In October, DBhd and its joint venture Country Garden, launched phase three of the Central Park development in Johor Bahru, which comprises 216 double-storey terrace units with an estimated gross development value (GDV) of RM187mil.

He said the group was also working on launching its Aliff Square 3 commercial project in Tampoi, Johor, by the end of this year, comprising of 68 units of shop-lots to cater for an existing waiting list of interested buyers.

Additionally, DBhd’s joint development project with state investment arm, Menteri Besar Negeri Sembilan Incorporation (MBNSI) at the 50-acre commercial land in Sendayan was slated to start sometime in 2020.


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