DNP Holdings Bhd ... Nov09

It is acquiring 9.4 acres of leasehold land in Pekan Penaga, Petaling Jaya district, for RM56 million cash to expand its landbank and contribute to future earnings.

The land purchase from Perniagaan Sanjung Sdn Bhd would be funded by bank borrowings or internally generated funds or both.

DNP expects to complete the purchase in three months.

Its net profit in the first quarter ended September grew 22.6% year-on-year to RM9.8 million, despite revenue slipping 12.8% to RM64.75 million. Earnings per share improved to 3.16 sen from 2.57 sen.

The lower turnover was due to lower contributions from its property development and manufacturing divisions. Going forward however, the group expects to see an improvement across the board as the economy recovers.