KUALA LUMPUR: DPS Resources Bhd's net profit surged more than threefold to RM2.25 million for the second quarter (Q2) ended September 30, 2023 (FY24), compared to RM0.70 million in the same quarter last year.
Revenue stood at RM14.9 million, an increase of 22.7 per cent from RM12.2 million 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 US dollar.
Concurrently, the property development segment saw increased inventory sales, bolstering overall revenue growth.
Additionally, the rental of buildings with comprehensive services reported a rise owing to higher occupancy rates.
A notable achievement for DPS Resources this quarter was the successful completion of its share consolidation initiative, which led to a substantial rise in earnings per share (EPS), from 0.10 sen in Q2 FY23 to 1.60 sen in Q2 FY24.
Similarly, the company's net tangible asset (NTA) per share has increased more than five times to RM1.17 as of September 30, 2023, from RM0.23 a year ago.
Executive chairman Tan Sri Sow Chin Chuan said the company's strong performance this quarter is a testament to its robust business model and the team's dedication.
"We remain committed to delivering high-quality projects and products, and we are optimistic about the future and will continue to focus on sustainable growth and value creation for our shareholders," he said in a statement today.
For the first half (1H) of FY24, DPS Resources reported a 5.2 per cent increase in revenue, reaching RM29.5 million, up from RM28.0 million in 1H FY23.
Additionally, the net profit increased by 221.5 per cent, amounting to RM4.18 million in 1H FY24 compared to RM1.30 million in the previous year.
Sow anticipates continued growth and stability, supported by a strong order book and ongoing strategic initiatives.
"We anticipate continued growth and stability in the coming quarters, backed 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 company 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," Sow said.
DPS Resources' joint venture initiatives with landowners to diversify into sustainable recurring revenue projects mark a significant step forward.
This includes a pioneering project encompassing 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 and positions DPS Resources as a leading sustainable developer in Malaysia, leveraging over 1,000 acres of accumulated landbanks.