DPS Resources Bhd, a property developer-cum-furniture manufacturer, has posted a substantial improvement in financial performance for its 2Q FY3/2024 ended Sept 30, 2023 buoyed by the group’s resilient marketing strategies and robust business model.
The group’s net profit jumped more than three-fold to RM2.25 mil in the quarter under review from RM701,000 in 2Q FY3/2023. An upward momentum was also observed in DPS’ revenue which edged up 22.8% to RM14.94 mil in its 2Q FY3/2024 from RM12.17 mil in the same quarter of the previous year.
This surge is primarily attributed to the furniture business segment which experienced robust growth due to rising demand and the strengthening of the greenback.
Concurrently, the property development segment also saw increased sales in inventories which bolstered overall revenue growth. Additionally, the rental of buildings with comprehensive services reported a rise owing to higher occupancy rates.
A notable achievement for DPS in its latest quarter was the successful completion of its share consolidation initiative which led to a substantial rise in earnings per share (EPS) from 10 sen in 2Q FY3/2023 to 1.60 sen in 2Q 3/FY2024.
Similarly, the group’s net tangible asset (NTA) per share has also increased by more than five times to RM1.17 as of end-September from 23 sen a year ago.
“Our strong performance this quarter is a testament to DPS’s robust business model and our team’s dedication,” commented DPS’ executive chairman Tan Sri Sow Chin Chuan. “We remain committed to delivering high-quality projects and products and will continue to focus on sustainable growth and value creation for our shareholders.”
For its 1H FY3/2024, DPS saw a dramatic rise of its net profit by 221.5% to RM4.18 mil from RM1.30 mil a year ago. Meanwhile, its revenue rose 5.2% to RM29.46 mil from RM28.01 mil in 1H FY3/2023.
Looking ahead, Sow anticipates continued growth and stability, supported by a strong order book and ongoing strategic initiatives.
“The launch of new affordable home projects in the near future will drive revenue growth for the property development segment while the group remains focused on expanding its market reach and enhancing operational efficiencies to sustain its growth trajectory in both the furniture and rental of building business segment,” he envisages.
Moreover, the group’s joint venture initiatives with landowners to diversify into sustainable recurring revenue projects mark a significant step forward.
This includes a pioneering project that encompasses agro-tourism, crops, bio-farms, renewable energy, solar farms and aqua-phonics. This initiative is set to become a cornerstone of sustainable development in the region while positioning DPS as a leading sustainable developer in Malaysia by leveraging over 1,000 acres of accumulated landbanks.
At the close of today’s trading, DPS was down 2.5 sen or 4.07% to 59 sen with 1.94 million shares traded, thus valuing the company at RM83 mil. – Nov 24, 2023