Management Discussion and Analysis

Financial Review

The Group’s revenue in the current financial year ended 30 June 2017 (“FY2017") increased by RM22.5 million or 14.3% as compared to the immediately preceding financial year ended 30 June 2016 (“FY2016”). The increase was mainly due to slightly higher property sales and higher hospitality revenue. Profit net of tax attributable to ordinary shareholders increased by RM4.8 million or 25.3% as compared to FY2016. The increase was mainly due to the larger gains on disposal of investment properties and lower loss from hospitality division.

As at 30 June 2017, the Group’s cash position remains positive with cash and bank balances of RM64.4 million and short term investments of RM90.1 million.

Operations Review

Property Development

Due to the oversupply of homes in landed and high-rise developments, home buyers in Johor are spoilt for choice when it comes to the purchase of residential products. The oversupply coupled with the tightening of credit lending have created an extremely weak market for property developers in Johor.

  • The property development business’ contribution to the Group’s profit before tax was RM35.5 million in FY2017 compared to RM29.7 million in FY2016. The higher profit before tax came from the improvement of property sales in both Taman Gaya and Taman Daiman Jaya, and from the disposal of investment properties in Kulai and Johor Jaya.

Taman Daiman Jaya

Taman Daiman Jaya offers an affordable range of products priced below RM500,000. In FY2017, the development at Taman Daiman Jaya registered revenue of RM40.4 million compared to RM25.8 million in FY2016.

The sales were mainly from the Precinct Permata which comprising 117 units double-storey terrace houses with take up rate of 48% and Precinct Nilam, a gated and guarded housing scheme for 8 units of double storey semi detached houses and 48 units of double-storey cluster houses registered a take up rate of 63% since its initial launch.

During  FY2017,  the  development  also  recorded  sales  of  double-storey  terrace  houses  in  Precinct  2B1 and 2C1.

Taman Gaya

Taman Gaya registered sales revenue of RM46.1 million compared to RM40.5 million in FY2016. The sales were mainly from the Precinct Arista Phase 1, which consists of 56 units of cluster houses and 16 units of semi detached.

A new sales gallery was built and opened in January 2017. This 7,049 square feet building also accommodates the space for the project team and customer service team. The new sales gallery, which is located at a strategic location and with its special aesthetic design, has successfully attracted many new enquirers. 

With the new sales gallery at Taman Gaya, the land on which the old sales gallery and site office are located has been freed up for commercial purposes. For this piece of land, the Group plans to create a Food & Beverage ("F&B") hub named ‘The Gaya Garden’ to attract F&B operators for future recurring income stream. Currently, the old sales gallery building is leased to a restaurant operator.

  • Daiman 45 Sales and Marketing

With the challenging market environment, various innovative marketing programs and promotional campaigns have been put together to generate sales.

This year, Daiman celebrates 45 years of continued property development in Johor. Capitalising on this, a year’s worth of marketing programs and promotional campaigns were put in place which help pushed the sales and marketing team beyond the regular scope of salesmanship. A wide range of marketing activities brought our sales team all over Johor to engage with potential buyers.

The outcome of these programs and campaigns helped the Taman Gaya development to record an increase of 14% in sales while the Taman Daiman Jaya development saw an increase of 67% in sales.

However, cost of operations continues to rise. A diversified revenue stream comprising rentals and financial investments enabled the Group to build a strong base for partially offsetting the general overheads and other costs.

Property Investment

The property investment division maintained its revenue of RM12.5 million as in FY2016 on the back of a soft market from new supply of office and commercial space. Profit before tax declined to RM5.7 million in FY2017 from RM14.7 million in FY2016. The decline in profit before tax was mainly due to lower fair value gains on investment properties recorded in FY2017 compared to the fair value gains in FY2016.

The four properties are expected to contribute positively to the divisional revenue in spite of the fact that the office sector will be challenging going forward. The office space market continues to see aggressive negotiation for renewal rates.

  • Menara Landmark

The office sector is seeing a slowdown. Shipping, Oil & Gas and Property Development sectors have registered decline in business activities. There are less renewals and also early terminations due to weakness in these sectors. The key trade sectors occupying Menara Landmark are Property Developers, Medical, Insurance Houses, Legal and Consultancy firms.

Demand for the Medical Suites remain stable, with no significant increase in occupancy rate. The team continues to aggressively market the available space.

The car park continues to provide a steady stream of income due to a strong base of season parking and consistent hourly parking demand.

Major Capital expenditures for building enhancement
The properties are managed with carefully planned M&E refurbishments with the intent of reducing core electrical loads. This will see reduced operating expenses and carbon foot print in the upcoming years. There will be an impact on the profits as the cost of major plant and equipment is significant. Other planned refurbishments include lifts, toilets and office lobby entrance upgrading.

  • Wisma Daiman

Office demand at Jalan Tebrau remains stagnant. The anchor tenant, Public Bank, continues to contribute significantly to the revenue of Wisma Daiman. The major challenges faced by Wisma Daiman are lack of sufficient car parking lots and new competition from Tebrau One and South Key. Nevertheless, the Management continue to explore different options and has carried out various feasibility studies for this building.

  • Daiman Apartments

The apartments are in close proximity to the Causeway and are fully leased out to tenants with majority of them working in Singapore.

  • Courts Setapak

The commercial building in Setapak Kuala Lumpur remains fully leased to Courts Malaysia. Tenancy was signed for long term. No significant changes are expected.

Hospitality

The hospitality division delivered a revenue of RM54.1 million in FY2017 compared to RM50.3 million in FY2016. The loss before tax was reduced to RM7.5 million from RM9.0 million in FY2016.

The DoubleTree by Hilton Hotel entered its 3rd year of operations in Johor Bahru City center. Revenue, average daily rate and gross operating profit met forecasts and are expected to grow year on year. The hotel is expected to contribute positively to the Group's cash flow.

Under Hilton’s management, the 4 star hotel establishment continues to attract strong corporate and leisure customers because of its strategic location and competitive product offerings. Strong domestic and Singaporean demand gave the hotel stable occupancy during the weekdays and weekends.

The F&B offerings in the hotel cater to a wide range of consumer needs from both in-house guests and non-guest diners. ‘Makan Kitchen’ showcased several guest chefs from other Hilton Properties to differentiate the buffet offering. Ramadan and other banquet events all proved to be popular. Tosca, the Italian restaurant, has developed an identity and now has a strong following.

Management and hotel operations meet regularly to discuss revenue growth, cost management and profitability. Revenue and profitability are expected to remain stable with consistent growth. There are no significant capital expenditures expected in the FY2018.

Leisure and Recreation

The leisure and recreation business generated RM9.5 million in revenue and a loss before tax of RM94,000 in FY2017 compared to RM9.2 million in revenue and loss before tax of RM1.1 million respectively in FY2016.

Management carried out a detailed study of the sports business and has started to grow this business. Demand for sports facilities will continue to grow as Malaysians become more health conscious on the back of the Government’s encouragement in sports activities.

  • Golf

The golf course is undergoing a major renovation. A new driving range has been constructed. It was opened for business in July 2017. The F&B business will be enhanced with a new café and an additional banquet ballroom. The additional works are expected to be completed by December 2017. These will add positive revenue streams to the Group.

  • Sports Complex

Daiman Johor Jaya Sports Complex houses a variety of sports activities. Swimming, badminton and futsal have become popular sports. Three additional futsal courts will be added by December 2017. The Sports Complex was extensively renovated with better toilets, a fitness gym and other facilities. Brazilian Jiu-jitsu Martial Art was also formed by converting the old squash courts to a new sports facility within.

  • Bowling Centre

Bowling remains extremely popular with the locals. Daiman Bowl remains profitable and is the best run bowling centre in Johor. No significant changes or capital expenditure are expected.

Explore Our Business

Property Taman Gaya G Living
Property Taman Daiman Jaya Kota Tinggi
Property Taman Perindustrian Murni Senai
Menara Landmark Office Tower Hotel Medical Suites
Daiman 18 Golf Club Johor Bahru
Daiman Johor Jaya Sports Complex
Daiman Sri Skudai Sports Centre
Daiman Bowl Johor Jaya

Latest News

Reliable Name For Quality Homes

21 April 2017

DAIMAN Development Bhd will continue to focus on what it is known in Johor’s property market for the past 45 years as one of the reputable developers of landed properties.

Read More

Terms & Conditions

Welcome to the website of the Daiman Group of Companies (‘Daiman Group’). By viewing this website, the viewers are agreeing to comply with and to be bound by the terms and conditions as set out below.

Intellectual Property

This website belongs to the Daiman Group of Companies . The copyright to the contents of this website is owned by the Daiman Group. This website is intended for personal use, quick reference, illustration, and information purposes only and may not be copied, re-distributed, or published in any manner without the written permission of the Daiman Group. Any unauthorized use of any part of this website is strictly prohibited.

The trademarks, logos, characters and service marks (collectively called “Trademarks”) displayed on this website belong to the Daiman Group. Nothing contained on this website should be construed as granting any licence or right to use any “Trademark” displayed on this website. Any use or misuse of the “Trademarks” displayed on this website, or any other content on this website, except as provided in these Terms & Conditions, is strictly prohibited.

Privacy Policy

The Daiman Group of Companies respect the privacy rights of their on-line visitors and recognizes the importance of protecting the information collected. The companies will not sell or share any personal information pertaining to their customers obtained via the website by telephone, mail/e-mail or in any other manner.

Viewers’ personal information collected or obtained may include name, e-mail address, phone number, home address, date of birth, occupation, etc. may be used by the Daiman Group of companies for their own internal marketing and demographics studies to enable them to constantly improve their site to meet viewers’ and customers’ needs. The data or information collected on-line may be used to contact viewers periodically by post, telephone, facsimile, e-mails or short message service (SMS) to update viewers on Daiman Group’s projects, new product launches or upcoming events and promotions.

Daiman Group takes the necessary precautions to safeguard viewers’ personal data against loss, theft, misuse, alternation, or destruction. However, given the nature of the Internet, the Daiman Group cannot guarantee that there is “perfect security” but will make best possible efforts to ensure that the privacy of users is safe guarded.

Indemnity

The viewers shall indemnify and keep the Daiman Group indemnified against all claims, damages, actions, and proceedings made or brought against the Daiman Group arising from their use of this website and/or any breach of terms in relation thereto by the viewers.

Disclaimer

This site is owned and operated by Daiman Group with the intention to provide information about the Group to the general public and stakeholders. Daiman Group does not provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and materials found or offered on this website for any particular purpose. The users acknowledge that such information and materials may contain inaccuracies or errors and the Daiman Group expressly exclude liabilities for any such inaccuracies or errors to the fullest extent permitted by law.

Daiman Group reserves the rights, in its sole discretion, to change or discontinue any aspect, feature, content, promotion of its products, or to correct any errors or omissions in any portion of this site any time without notice.