SINGAPORE (Feb 12): Asataka Holdings reported 2Q18 earnings rose by 13.6% to RM9.34 million ($3.13 million) compared to RM8.23 million in 2Q17.

Revenue increased by 66.1% to RM112.0 million from RM67.4 million a year ago, mainly attributable to revenue streams generated from the group’s additional projects such as Johor Bahru’s City Council, Majlis Bandaraya Johor Bahru (MBJB) and housing development in Pengerang (Bukit Pelali @ Pengerang).

Cost of sales also increased by 73.5% to RM93.9 million from RM54.1 million last year.

Therefore, gross profit for the quarter was RM18.1 million, 36.1% higher than RM13.3 million in 2Q17.

During the quarter, the group recorded other losses of RM0.35 million compared to other gains of RM1.34 million in the previous year, mainly due to currency translation loss arising from the SGD denominated cash and cash equivalents as a result of the weakening of the SGD against MYR.

Selling and distribution expenses were 70.6% higher at RM0.52 million from RM0.30 million a year ago, mainly due to aggressive marketing expenditure for roadshows and events for selling and promoting Phase 1 of OBS and Bukit Pelali @ Pengerang.

Looking ahead, the group is accelerating plans to market its current projects in Johor, leveraging on major infrastructure developments and the strategic proximity to Singapore.

It is confident that it is able to achieve a positive take-up rate, with the uniqueness of its projects in Johor Bahru and Pengerang, along with its management track record.

Meanwhile, the group also remains cautiously optimistic on the prospects in Iskandar Malaysia.

Shares in Astaka last traded at 24 cents.