DAMANSARA REALTY POSTS RM96.2 MILLION IN FIRST HALF REVENUE
KUALA LUMPUR, 27 August 2020: Damansara Realty Berhad (DBhd) or the Group posted RM96.3 million in revenue for the six months period ended 30 June 2020 (1HFY2020).
The Group saw a net loss of RM4.3 million for the first half of financial year 2020, against a net profit of RM6.2 million in the same period a year ago.
This is attributable to the nationwide lockdown due to the COVID-19 pandemic, which affected the Group’s operations, especially for Metro Parking Group. Its businesses in Malaysia, Philippines, and Singapore were under restrictions during the lockdown as per the respective governments’ directions, it said in its filing with Bursa Malaysia today.
“We are continuing as planned with our group wide corporate rationalisation initiatives to safeguard our financial resilience in dealing with the changing market conditions brought about by COVID-19. This will ensure that we have sufficient cash reserves for the rest of the year and beyond,” said DBhd’s Group Managing Director, Azman bin Haji Tambi Chik.
He added that the initiatives are focussed on financial prudence and a disciplined approach for better cost management and operational cash flow.
“Our Property and Land Development (PLD) segment still remains a crucial driver of contributions to the Group’s profit as there is still market demand for housing despite the property downturn,” said Azman.
For its 1HFY2020, the Group’s PLD segment recorded a revenue of RM9.61 million compared to RM5.74 million in 1HFY2019. The PLD segment also posted a profit of RM3.54 million compared to RM3.41 million for 1HFY2019.
The good performance was mainly due to higher units sold from its projects in Johor Bahru and Pahang.
“Meanwhile, our Integrated Facilities Management (IFM) segment has proven to be a recession proof with recurring income as the driver in maintaining our long-term sustainable profitability. We expect the segment to be the largest revenue contributor for DBhd in the coming years as the property market recovers. This will help us solidify our position as a key player in the IFM industry.” he said.
WHEN SILENCE ISN’T GOLDEN
No News Means Bad News During Uncertain Times
Uncertain times brought by the global COVID-19 pandemic has changed investor engagement as we know it. As we continue on in this era of social distancing, people are consuming vast amounts of news and information to stay informed whilst staying safe indoors. This has created a huge opportunity for companies to engage a captive audience using the tools and channels that are still conveniently accessible such as online media and news channels.
So although the Covid-19 pandemic has hit most businesses negatively, making the knee jerk reaction to stay quiet and lay low may be detrimental to your business. People are wary to buy from companies they no longer see or hear from. If your company has not been consistently engaged with your clients, investors or stakeholders recently, this is the best time to engage and connect, to prove that your company is post-Covid future ready.
- Keeping your presence in the marketplace: Your company needs to stay relevant to your stakeholders. This means maintaining trust and letting them know how the company is doing. An absence of communications will leave your audiences with questions and perhaps lead to incorrect conclusions.
- Less noise in the marketplace means more attention space: A lull in the marketplace signals a good opportunity to reach out and gain more mindshare from your stakeholders and the investment community.
- Own your narrative or someone else will: Uncommunicative companies often give ground for competitors to take control of their narratives freely without checks.
- Set a platform for future success: Communicating well, frequently, transparently and thoughtfully with stakeholders sets your company apart during uncertain times. Meaning more stakeholder confidence and higher chance that your company will still be in the standing when the crisis ends.
So when the time comes for your company to announce how the company is doing in its quarterly earnings, a press release may prove to be the critical differentiator for your company.
Bearing in mind that the earnings press release is for all investors, not just the media, your company will need to ensure it gets the most value to make your press release count.
- Think critically about how to tell your story: The earnings press release is the first glimpse investors will get of your company’s performance. Use it as a platform for your company to build your brand story that matches your brand identity and values.
- Present your company performance in the best light: Even though business performance is affected by the Covid-19 economic downturn, leveraging on the earnings releases to provide honest representations of your company’s position and key messages in the most accurate and beneficial manner possible will bring reassurance to your stakeholders.
- Give guidance for the future: Use the earning press release to engage clients, and to influence your investors and the public about the vision of your company and its plans in the upcoming year or quarter. This guidance is important because it lets your stakeholders know what they can expect from the company in the near future.
- Seek expert advice to carefully craft your press releases: Working with an effective public relations agency is also (of course) a good idea. They can bring a more objective view of your story angles and key messages.
Sooner or later, the Covid-19 pandemic will end. Ultimately, your communication strategies should align to what your company wants to achieve in the post-COVID future.
KUALA LUMPUR, 3 AUGUST 2020: Damansara Realty Berhad (DBhd) has announced the appointment of Azman bin Haji Tambi Chik as its Group Managing Director (GMD), effective 1 August 2020.
Appointed as DBhd’s Group Chief Executive Officer on 11 May 2020, Azman brings more than 30 years of experience to the Board. He has extensive knowledge in corporate strategy, planning, business development, legal, procurement, operations, as well as the acquisition of new business within the fields of Integrated Facilities Management (IFM), technology, food & beverages, and hospitality.
DBhd’s Chairman, Dato’ Ahmad Zahri said, Azman’s array of expertise in marketing, business development, business strategic planning, corporate financing, investment, strategic communications and stakeholder management makes a strong addition to the Board and will contribute positively to DBhd’s next phase of business sustainability, expansion, and growth.
“Having Azman as the member of the Board will not only help facilitate business and operations executive decisions through the new normal in the current industry but also lead the Group in its next growth initiatives,” he said.
DAMANSARA REALTY’S EXECUTIVE VICE CHAIRMAN RESIGNS
KUALA LUMPUR, 14 July 2020: Damansara Realty Berhad (DBhd) Executive Vice Chairman (EVC) Haji Abdullah Md Yusof is stepping down from the Board to focus on other commitments effective 13 July 2020, the Company announced today.
Abdullah, 54, has been a director of DBhd since 2014. He was re-designated as EVC in March 2020 to oversee operations and the Group’s strategic direction while the appointment of Azman Tambi Chik was pending.
“I am confident that I leave DBhd in good hands, and its strong management team will continue to build on the successes that DBhd has built over the years,” said Haji Abdullah.
“I would like to thank the Board for the opportunity to serve the Group and everyone that I have worked with over the years,” he added.
DBhd thank Haji Abdullah for his leadership and years of services and wish him every success in his future endeavours.
DAMANSARA REALTY POSTS RM49.4 MILLION IN Q1 REVENUE
KUALA LUMPUR, 25 June 2020: Damansara Realty Berhad (DBhd) posted RM49.4 million in revenue for the first quarter (Q1) ended 31 March 2020.
The Group saw a net loss of RM2.2 million for the first quarter, against a net profit of RM2.3 million in the same quarter a year ago.
The Group saw its revenue heavily impacted due to the nationwide lockdown resulted from the COVID-19 pandemic, which affected the operations of its subsidiary Metro Parking Group the most. Its businesses in Malaysia, Philippines, and Singapore were under restrictions during the lockdown as per the respective governments’ directions.
As a reactive measure, the Group has put in place a Groupwide corporate rationalisation plan to safeguard its financial resilience to deal with changing market conditions, it said in its filing with Bursa Malaysia today.
Among the measures taken are reducing capital spending and non-essential operating costs, reassessing its value chain, applying for rebates, moratorium, or concessions from the government and its vendors as well as halting all launch events and freezing recruitment till year-end.
“We have cut back on spending to make sure we have sufficient cash reserves for the remaining part of the year and beyond,” said DBhd’s Group Chief Executive Officer, Azman Tambi Chik.
“We will remain financially prudent, focussing on disciplined management of costs and operational cash flows while continuing to deliver quality services for all of our stakeholders,” he said.
“As our operations gradually return to full service, we understand that they will be operating in a changed world of stringent health standard operating procedures (SOPs) and of higher dependency on automation and technology. How well we anticipate and adapt to this new normal is crucial in keeping our clients and employees safe and healthy as well as position our business to bounce back and capitalise on the opportunities ahead.” Azman said.
THE ARRIVAL OF VIRTUAL AGMS
As businesses adjust to the shaky times brought about by the COVID-19 pandemic, corporate Malaysia has been encouraged to turn their annual general meetings (AGMs) into virtual events.
Some of us will welcome this change, some of us won’t. What is certain is that with the advancement of technology and globalisation in corporations, virtual meetings is a step towards a certain future that was perhaps, merely fast forwarded by the pandemic.
Regardless of circumstance, corporate Malaysia should be sitting up and paying attention to the ins and outs of a virtual AGM. Coordinating a virtual or even a hybrid AGM is similar to directing a movie whereby you select the main actors, scenes, script, as well as ensuring quality audio and visual. The mission is ensuring the ‘show’ is run as smoothly and efficiently as possible, while delivering the right messages to your audience.
Here are some things to keep in mind:
Ensure a stable platform and practical setup i.e. feasible & user-friendly software, strong internet connection especially at broadcast venues. Technical support personnel should be present at the broadcast venue for any required assistance. For example, TNB recently announced a virtual AGM which will be conducted via a platform specialised for AGMs – Lumi AGM.
The right moderator makes a huge difference – A sharp, alert, unbiased moderator with a strong grasp on the organisation’s goals and objectives would be able to direct the conversation in the right direction.
Familiarity / Technology-savviness
All presenting parties should be familiar with the system / software to ensure smooth presentation and reduce lagging time.
Roles & SOPs
Clearly assign roles i.e. assigning Chairman / CEO as main and supporting presenter. Provide clear and direct instructions to ensure shareholders are well informed of the SOPs for their remote participation, questioning and voting.
Ensure time is allocated between main screen and alternative screens, well rehearsed and everybody is aware of the allocated screen time.
Portray a clean and polished visual – ensure that there is sufficient space and social distancing amongst the presenting parties.
Ensure there is good communications between the team on the screen and behind the scenes.
With the AGM season underway many, the Securities Commission (SC) has issued a guidance note for public listed companies (PLC) on the conduct of fully virtual general meetings. The guidelines include:
Virtual meetings should be conducted with as few individuals physically present as possible
There should not be more than 8 essential individuals physically present at the broadcast venue
This should include the Chairperson of the general meeting, Chief Executive Officer, Chief Financial Officer, company secretary, auditor as well as audio-visual support
Those present must observe all social distancing SOPs and guidelines as provided by the government
Companies can submit an application to the SC for a time-limited travel exemption for the essential individuals to travel to the broadcast venue for the fully virtual meetings
As we continue on in this era of social distancing, maximise the tools and channels that are still accessible to you. A good strategy and successful execution of AGM may go a long way in delivering your company’s messages to your shareholders.
Written by: Atiq Safirah (June 2020)
PETALING JAYA, 20 May 2020: Specialised swab sticks made in Malaysia are heading for clinical trials and, if approved, will pave the way for COVID-19 mass testing which is crucial to the country‘s exit from lockdown.
A team of public health and medical experts from around Malaysia has been working with the Malaysian Plastics Manufacturers Association (MPMA) and the Malaysian Petrochemicals Association (MPA) to make the specialised nasopharyngeal and oropharyngeal swab sticks and contribute 1.2 million swabs for the COVID-19 tests.
“Pre-clinical testing suggests that the swabs we produced are performing well,” said Professor Dr Tan Maw Pin from Universiti Malaya’s Medical Faculty. “Malaysia has a highly successful plastics industry which has been able to manufacture the polyester fibres and the plastics shafts which make up the swab,” she said.
“We are currently working to expedite the process of obtaining the necessary funding and approvals for clinical trials, as well as an approval from the Medical Devices Authority (MDA) so that the swabs can go into production and distribution as soon as possible,” she said. The swabs produced will be used for diagnostic testing for flu and other virus illness in future and will continue to be useful even after the COVID-19 pandemic.
Professor Dr Tan is part of the team drawn from experts from Hospital Kuala Lumpur (HKL), Hospital Pulau Pinang, Perdana Universiti-Royal College of Surgeons (PU-RCSI) in Ireland, and Universiti Kebangsaan Malaysia (UKM) as well as Universiti Malaya’s (UM) Medical Faculty.
“The ability to conduct mass testing is critical to lifting the Movement Control Order (MCO), and nose swabs are critical to mass testing,” she added. “Buying the millions of nose swabs needed from overseas is probably not feasible at this time,” said Professor Dr Tan.
Malaysia currently does not have any facilities to make these swabs, which are expected to be in short supply world-wide, said MPMA President Datuk Lim Kok Boon. “Malaysia needs to be self-sufficient in producing these specialised swabs which are in high demand around the world now,” he said.
The US, where Malaysia’s main suppliers are, has banned the export of medical goods which includes these swabs. Alternative suppliers are in Italy and are also struggling to keep up with demand. China makes these swabs but there are hurdles in securing supply amid high demand and in importing and transporting the swabs.
This initiative is in partnership with the Ministry of International Trade and Industry (MITI) which has allowed resumption of operations to manufacturers of essential plastics products since the beginning of the Movement Control Order on 18 March 2020.
The team of experts was able to identify and contact local factories which agreed to repurpose their production lines to make the different components for the swabs.
“Our members worked very quickly and very hard to resolve and overcome technical obstacles to be able to make the swab material using high quality polyester fibers,” said Lim Kok Boon.
“Malaysia is home to some of the biggest resin producers in South-east Asia and we are confident that we have the capacity to scale up and sustain this initiative for the long run,” said President of MPA, Akbar Mohd Thayoob (from Petronas Chemical Group Bhd).
The swab sticks must be made from synthetic material such as polyester fibers and plastics shafts as natural materials such as wood, cotton and paper contain DNA which would interfere with the tests. Also, the swab sticks have to be flexible enough to insert into the nose cavity.
Precision shafts for the swabs will be produced by Heveaplast (M) Sdn Bhd, a precision plastics extrusion manufacturer which will be contributing by producing the 1.2 million swabs. For this purpose, Heveaplast has modified its plastics extrusion process leveraging on its latest extrusion machine’s optical measurement feature. The shafts are made of polypropylene, which are being sponsored by Lotte Chemical Titan (M) Sdn Bhd, Malaysia’s first and leading producer of olefins and polyolefins.
Silicon Creation Sdn Bhd has undertaken to wind the swabs onto the tips of the shafts, with the swabbing material of polyester staple fiber sponsored by Recron Malaysia Sdn Bhd. Recron Malaysia is an integrated polyester and textile producer with manufacturing facilities in Melaka and Nilai, Negeri Sembilan.
Photo 1 – Heveaplast’s plastics extrusion line to produce precision shafts for swab sticks
Photo 2 – Swab sticks production process at Heveaplast
Photo 3 & 4 – Samples of swab sticks produced by MPMA
KUALA LUMPUR, 23 March 2020: PLASTICS manufacturers are stepping up to donate and supply hospitals and their frontliners with plastic items to respond to the shortage of personal protective equipment (PPE) due to the widespread Covid-19 outbreak.
The Malaysian Plastics Manufacturers Association (MPMA) has organised a donation drive among its members, calling on them to give what they can to hospitals facing shortages of disposables, including mineral water, face shields, aprons, gowns, shoe or ankle covers, bottles and goggles.
MPMA members have already donated 15,000 plastic aprons for doctors, nurses and hospital staff to use and will be donating more in days to come.
“We are looking at sourcing longer plastic aprons that are better-suited for medical frontliners. In the meantime, our members are providing plastic sheeting for the frontliners to repurpose as they need,” said Datuk Lim Kok Boon, MPMA’s president.
The donated plastic sheeting can be used as temporary barriers or curtains in the hospitals, as well as disposable protective covering for medical staff.
“As plastics is a critical sector, we are determined to do whatever we can to help the nation’s fight against the Covid-19 outbreak,” Lim said. “We must protect the frontliners in our battle against this disease.”
KAJANG, 27 February 2020: Protasco Berhad recorded a fourth straight quarter of profit and returned to the black with a full-year net profit of RM19.1 million despite a lower revenue for the financial year ended 31 December 2019.
The Maintenance, Construction, Property, Trading and Education business segments recorded improvement in its financial performance and contributed to the full-year Group pre-tax profit of RM34.6 million in 2019 against a pre-tax loss of RM23.9 million in the previous financial year. This favourable result was achieved despite lower revenue of RM823.6 million in the current financial year as compared to RM904.9 million in the previous financial year.
Profit after tax for the quarter is RM5.9 million as compared to a loss after tax of RM42.1 million recorded in the preceding corresponding quarter.
The Group’s current quarter and full-year favourable financial performance revealed the continuing positive impact of its right-sizing exercise which includes cost optimisation efforts that generated better margins.
“This turnaround is proof that our hard work is paying off and we hope to carry this positive momentum for the long term. We want to capitalise on our fundamentals and ensure a sustainable footing for the long run, so that we could give our best to our stakeholders,” said Dato’ Ir Kenny Chong Ther Nen, Protasco’s newly appointed Group Managing Director.
Protasco’s revenue for the fourth quarter, however, slid by 10 percent to RM242.2 million resulting in a lower full-year revenue of RM823.6 million as compared to RM904.9 million in the previous financial year due to lower contributions received from the Perumahan Penjawat Awam (“PPA”) Phase 2 Project under its Construction business segment which is expected to be completed by early second quarter 2020.
The construction of its solar plant in Melaka has commenced and is expected to be completed in the fourth quarter of 2020. Upon completion, it will immediately begin commissioning electricity to Tenaga National Berhad (“TNB”). It is expected to contribute positively to the Group’s earnings. Protasco through its subsidiary I2 Solarpark One Sdn Bhd has a 21-year power purchase agreement with TNB.
BETTER MARGINS PUSH DAMANSARA REALTY’S 2019 PROFIT HIGHER BY 19.3 PERCENT
KUALA LUMPUR, 19 February 2020 – Damansara Realty Berhad (DBhd) saw its 2019 full year net profit jump 19.3 percent to RM23.3 million and its pre-tax profit rise 7.6 percent to RM27.3 million.
The Group’s improved performance resulted from higher Integrated Facilities Management (IFM) projects margin, sales of its Aliff Square 2 (AS2) commercial units as well as contributions from its joint venture with Country Garden for Central Park development in Johor Bahru.
“This performance is evidence that DBhd is progressing towards high-growth & better-margin projects despite lower revenue recorded last year,” said DBhd’s Group Managing Director, Ts. Brian Iskandar Zulkarim.”
DBhd Group fourth quarter revenue has increased by 7.2 percent to RM88.2 million compared to the same quarter in the preceding year. Net profit stood at RM13.5 million and pre-tax profit at RM14.8 million.
“We are seeing positive results from our strategic alliances, especially for our property development segment.” We have also continued to expand these alliances from our partnership with Active Estates for the development of 68 Commercial Units at Business Boulevard Central Park JB worth more than RM156 million,” he added.
DBhd also partnered with Menteri Besar Negeri Sembilan Incorporated (MBNSI) to jointly develop a mixed-development project Bandar Sri Sendayan, Negeri Sembilan worth more than RM770 million. With planning underway, DBhd is looking to break ground within the Q2 of 2020. This 50-acre commercial plot is to be developed over the next 5 to 10 years.
“In 2020, we are doubling our efforts to explore more opportunities in the IFM segment. We believe that our strategy in improving the quality of our contracts through technology adaptation and innovation will bear fruits soon,” Ts. Brian said.
“This includes the Metro Parking Group (MPG) implementing its in-house cashless and automated system to improve long-term business efficiency and margins.”
Earlier in 2019, the MPG through its subsidiary, Metro Parking Philippines (MPP) was awarded a RM62 million contract to develop and manage various parking facilities in Madrigal Business District, Manila.
The Singapore Operations via Metro Parking Singapore (MPS) also reported a positive result in 2019 following a major transformation exercise aimed at bringing it back to profitability, led by its newly appointed Managing Director, Mohd Afiq Farhan Bin Md Hanif, who is one of the talents in the Group’s succession planning programme.
*Ts. stands for the title of ‘Professional Technologist’ awarded by the Malaysia Board of Technologists (MBOT).