Damansara Realty earnings 15.4% lower in fourth quarter

PETALING JAYA: Damansara Realty Bhd’s net profit for the fourth quarter ended Dec 31, 2019 fell 15.4% to RM14.67 million from RM17.34 million a year ago, mainly due to higher cost of sale.

However, its revenue went up 7.2% to RM88.21 million versus RM82.31 million previously.

For the full-year period, its net profit rose 16.3% to RM23.98 million from RM20.62 million a year ago, mainly due to the contribution from property & land development activities (PLD) segment driven by its project joint venture development in Central Park, Johor Baru with Country Garden Management Sdn Bhd.

Rrevenue decreased 3% to RM294.32 million compared with RM304.13 million, dragged down by lower contribution from integrated facilities management (IFM) and project management consultancy (PMC).

The group said its main objective during this five-year phase is to focus on tech-based solutions and innovation in its services to increase productivity, improve operational efficiencies and optimise resources.

Damansara Realty said it is growing rapidly through developing innovative solutions to create unique value propositions to meet the changing market needs and demand for increased productivity and automation. It is also looking at how it can capitalise on data analytics to grow its business.

“Whilst the PLD segment will remain the key driver of profit for the group over the long-term, we continue to be selective with development projects as the property market recovers. We foresee IFM segment to predominantly generate larger growth opportunities for the group, countering the effects of the softer property market.”

“On the PMC front, we are combining strengths with PLD to expand our consultancy services beyond the healthcare sector to specialised development projects such as hospital planning, development and construction which will diversify income streams as well as support the group’s property projects.”