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Damansara Realty targeting 15% topline growth in FY18

KUALA LUMPUR (Feb 13): Damansara Realty Bhd — which just returned to black in its financial year ended Dec 31, 2017 (FY17) — expects to sustain its earnings growth momentum in FY18, and targets a topline growth of up to 15% year-on-year.

For FY17, the group reported a net profit of RM17.8 million versus a net loss of RM27.8 million a year earlier, while revenue rose 36% to RM249.4 million from RM183.2 million.

At a press briefing today, Damansara Realty group CEO Brian Iskandar Zulkarim said the group is eyeing several contracts under its integrated facilities management (IFM) division this year.

He said there are two large contracts that could potentially contribute more than RM10 million per month in revenue each, and several smaller contracts, but declined to reveal further.

"We continue to look for more opportunities at RAPID (Refinery and Petrochemical Integrated Development). We have established a good relationship with Petronas. We are also looking beyond Petronas [and] we have a few more contracts in the pipeline that we are eyeing.

"We will announce when the time comes. We are looking at two very big contracts this year and several smaller contracts but I can't tell you the details," he said.

While Damansara Realty's IFM segment continues to grow, Brian made it clear that the company is not abandoning its property development division, although the management is a bit more cautious about the latter's outlook.

Amid the generally lacklustre local property market, group chief operating officer Yahaya Hassan said the company's property division will not be very aggressive, and that any potential launches in 2018 will depend on the performance of its current developments.

Its existing projects comprise Damansara Hills 1 in Kuantan, Pahang, the Central Park development and Aliff Square 1 and 2 in Johor Bharu, Johor, and the 1Malaysia Public Housing Project (PPA1M) in Putrajaya.

While the group has plans for Damansara Hills 2, Yahaya said launches will depend on how the sale of units at Damansara Hills 1 performs this year.

"We are building 49 terrace and semi-detached units [at Damansara Hills 1] and currently the take-up rate is about 14%. We have had a lot of inquiries but the buyers seem to be facing difficulty in securing financing," he said. — theedgemarkets.com

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