Financial analaysis and investment recommendation

1. Damansara Realty Berhad
1. Principal activities
a. Investment holdings
b. Project management
c. Subsidiaries : (mostly inactive)
Active :
a. Project management
b. Engineering maintenance
c. Franchising of professional cleaning services
d. Real estate services
e. Facilities management
In active :
f. Contract management
g. Construction
h. Management services
i. Financing – leasing
j. Quarrying
k. Sanitation services
l. Timber operation
m. Property development
n. Importation of food stuffs
o. Manufacturing of pharmaceutical

2. 2. Audit qualification ( matters concerned for attention )
a. Revenue recognition basis
b. Impairment of assets
c. Investment in subsidiaries
d. Trade and other receivables
e. Inventories
f. Goodwill
3. Share price performance

3. 4. Revenue

5. 5. Statement of Financial position

7. 6. Cash flow statement

9. 7. Summary
Current price is at 2020 - RM0.20 per share
2017 - RM 0.52 per share
Earning per share : 2018 - RM 0.0601
2017 – RM 0.0548
Price Earning ratio :
2018 - 3.33 times
2017 - 9.49 times
Total number of shares - 318,371,000
Market capitalisation – Share price X Number of shares
Market capitalisation RM 63,674,200
Net assets per share is RM174,829,000
Three years ago…. In 2016
Market capitalisation RM 108,623,300 310,378,000 X RM0.35
Net assets per share is RM 95,703,000
Accumulated losses - 2018 – RM 10,370,000
2016 - RM 47,011,000
Cashflow from operation 2018 RM 18,068,000
2016 RM (19,870,000)
a The current market price is already too low at RM 0.20 showing that the share price
is now at the bottom.
b The Price Earning ratio is 3.33 times compared to 9.49 times in 2017. (The average
PER is about 15 times) showing the the company is having problem with image and
market sentiment and confidence.
c The Net assets per share is RM0.549 compared to in 2016 at RM 0.30 per share
showing the the company is growing physicall.
d Accumulated losses in 2018 was RM 10,370,000 as compared to RM 47,011,000 in
2016 showing that the company is in the process of full recovery.
e Cashflow from from operation in 2018 was RM 18,068,000 compared to
RM(19,870,000) – showing a positive Cashflow profit .
f Revenue structure is not credible… There is a need to restructure the revenue
source. Profit margin in 2018 was 26.78% and 22.14% in 2017. It has improved but
the margin is rather low for a service based company. Operating expenses at RM
63,582,000 is rather high compared to the profit margin at RM 81,100,000.

10. Overall, The company is viable overall and need to be turn around to show rapid
performance. Investors relation should be the main focus to improve the PER from 3.3
times to about 10 times.