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Damansara Realty's 2Q earnings lifted by JV project, lower expenses

KUALA LUMPUR (Aug 15): Damansara Realty Bhd recorded improved second quarter earnings, thanks to lower operating expenses and contribution from its joint venture (JV) development in Central Park, Johor Bahru.

It posted a net profit of RM3.66 million in the three months ended June 30, 2019 (2QFY19) compared with a net loss of RM330,000 a year ago. Consequently, earnings per share improved to 1.15 sen from a loss per share of 0.1 sen a year ago. Revenue, conversely, slipped 7.14% year-on-year to RM68.93 million from RM74.23 million.

For the cumulative six-month period (6MFY19), the group's net profit came in about four times higher at RM5.46 million compared with RM1.41 million in 6MFY18, mainly due to the contribution from the Central Park JV.

This is despite revenue slipping 3.61% to RM140.22 million from RM145.47 million, due to lower revenue contribution from its project management consultancy segment after the disposal of Healthcare Technical Services Sdn Bhd in 2018, and lower units sold from the group's property projects.

"We are encouraged by our first half results, despite having expired contracts, we have successfully secured new contracts worth approximately RM80 million in the first half of the year.

"Currently, our tender book stands at RM313 million up to Q2 2019 with an exciting 26% success rate. This has placed us on a path for sustained growth and position DBhd (Damansara Realty) closer to our financial goals,” said Damansara Realty's group managing director Brian Iskandar Zulkarim at a press briefing today.

Damansara Realty shares were suspended for an hour between 2.30pm and 3.30pm today. On resumption of trading, the stock was up 2.5 sen or 5.95% at 44.5 sen, giving it a market capitalisation of RM127.35 million. In the past one year, the stock has gained 15.58%.

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