Damansara Realty earnings fall on higher cost, Amcorp earnings rise on property sales

by FARA AISYAH/ graphic by MZUKRI

DAMANSARA Realty Bhd’s transformation into an assets and facilities management solutions provider continues amid the weak property market.

The company also intends to broaden its offerings in the project management consultancy segment beyond the healthcare sector to include construction, aimed at increasing and diversifying its income streams to ensure sustainable recurring revenue and support of the group’s property projects.

The move comes after its net profit declined 15.4% year-on-year (YoY) to RM14.67 million in the fourth quarter ended Dec 31, 2019 (4Q19), due to higher cost of sales.

The proper ty developer recorded RM63.46 million in the cost of sales for the three months in focus compared to RM54.47 million in 4Q18, its statement to Bursa Malaysia yesterday revealed.

Earnings per share (EPS) for the quarter was also lower at 4.61 sen against 5.45 sen in 4Q18. Quarterly revenue, however, increased 7.2% YoY to RM88.21 million.

For the financial year ended Dec 31, 2019, the group’s net profit climbed 16.3% YoY to RM23.98 million due to contribution from its property and land development segment which was driven by its project joint venture development with Country Garden Management Sdn Bhd in Central Park, Johor Baru (JB).

Yearly revenue dipped 3.2% YoY to RM294.32 million on lower contribution from the integrated facilities management and project management consultancy segments.

The decrease was offset by improved contribution from the property and land development segment, helped by projects at Taman Damansara Aliff and Central Park in JB.

Damansara Realty said its main objective for the next five years is to focus on technology-based solutions and innovation in its services to increase productivity, improve operational efficiencies and optimise resources.

“As we actively identify and pursue opportunities to grow our business organically, we are also growing rapidly through developing innovative solutions to create unique value propositions to meet the changing market needs and demands for increased productivity and automation.

“We are also looking at how we can capitalise on data analytics to grow our business,” it said.

Meanwhile, Amcorp Properties Bhd’s net profit surged to RM8.47 million in 3Q20, from RM147,000 the year prior, mainly contributed by profit from its Malaysian properties segment.

The growth was partially offset by lower contribution from the Holland Park Villas in the UK.

EPS was higher at 1.19 sen, against 0.02 sen posted in 3Q19.

Quarterly revenue jumped 80.5% YoY to RM65.55 million as the Malaysian properties and renewable energy (RE) and contracting divisions contributed RM35 million and RM30.6 million respectively.

“The higher revenue by RM29.2 million was mainly contributed by the sale of land in Sepang for RM21.9 million and higher contribution from our Sg Liang hydro plant,” the company told Bursa Malaysia yesterday.

Revenue from its Malaysian properties was mainly derived from the RM21.9 million sales of two pieces of contiguous land in Sepang and a sale in Sibujaya and Kayangan Heights of RM10.8 million, coupled with rental income from investment properties of RM2.3 million.

The group’s contracting works and RE segments contributed RM17.1 million and RM13.5 million respectively.

For the nine months ended Dec 31, 2019, Amcorp’s net profit declined 31.2% YoY to RM6.72 million due to lower contribution from overseas properties, which was mitigated by higher contribution from Malaysian properties.

Nine-month revenue jumped 46.3% YoY to RM142.95 million on higher contribution from the RE and contracting division and sale of land in Sepang.

Amcorp will continue to focus on its business of properties and RE and contracting. Barring any unforeseen circumstances, it expects group operations “to be profitable” for the year ending March 31, 2020.