Desane Group Holdings Limited

Desane Group Holdings LimitedA Look at FY 2018 Results: Desane Group Holdings Limited (ASX: DGH) ended FY 2018 by generating net profit after taxes amounting to $0.6 million which implies the substantial fall on the YoY basis. In FY 2017, net profit post taxes amounted to $5 million.

Desane Group’s financial numbers (Source: Company Reports)

The primary reasons led to this substantial fall are fall in the revenues, other income, property development profit as well as decline in the revaluation increment. However, a rise in the property development expenses, employee benefit expenses, depreciation expenses as well as in the other expenses. At the end of FY 2018, the company had total current assets amounting to $20.6 million which reflects from the prior year.

What to Expect from Desane Group: The management of Desane Group is having a favorable outlook on the company. As per the management, after unloading 68-72 Lilyfield Road Rozelle asset, the company is expected to witness positive momentum, however, in the short-to-medium term. Moving forward, the company can reap the benefits of the anticipated shift with regards to the property market conditions. Moreover, the legal hurdles have also been lifted.

Technical Overview: Moving Average Convergence Divergence or MACD indicator has been applied on the monthly chart of Desane Group by using the default values. As per the observation, the MACD line has just crossed the signal line. Therefore, it would be too early to say that whether it would go up or down. Hence, it is widely suggested to wait and watch the stock at the current price level of $ 1.340.
 

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