PETALING JAYA: Construction and property group Gagasan Nadi Cergas Bhd is riding a strong wave of growth, posting solid earnings for two consecutive quarters, lifted by affordable housing projects under its property development segment.
Net profit came in at RM6.5 million in the second quarter ended June 30, 2025 (Q2’25), turning around from a net loss of RM1.2 million in the corresponding quarter last year (Q2’24), and is 25% more than the net profit of RM5.2 million of the preceding quarter (Q1’25). The consecutive quarters' performance resulted in net profit for the six-month period ended June 30, 2025 (H1’25) surging nearly eightfold to RM11.6 million from RM1.5 million in the previous corresponding period (H1’24).
The stronger net profit in Q2’25 was underpinned by an 87% jump in revenue to RM112.7 million from RM60.2 million in Q2’24, propelled by the robust property development segment. For H1’25, revenue almost doubled to RM207 million from RM107.4 million last year in tandem with the growing contributions from affordable housing projects. The momentum was mainly supported by the Idaman Bukit Jelutong project, which was completed last month, and the ongoing Idaman Kwasa Damansara R4-1 project.
The property development segment, which contributed 75.8% of group revenue in Q2’25, recorded a 160.1% increase in revenue to RM85.3 million during the quarter under review from RM32.8 million during the corresponding quarter last year.
Group managing director Datuk Wan Azman Wan Kamal said: “The stellar financial results in Q2’25, following a solid first quarter, signal sustained momentum as we enter a new phase of accelerated growth, anchored by the strong expansion of our property development segment in affordable housing.”
Last month, he added they marked a major milestone with the vacant possession delivery of 1,260 affordable homes at Idaman Bukit Jelutong, their first Idaman project.
With a target of delivering affordable housing projects worth RM4 billion in gross development value (GDV) over the next eight years, Gagasan Nadi Cergas is well positioned to play a defining role in turning the dream of home ownership into reality for many Malaysians, Wan Azman said.
In addition to Idaman Bukit Jelutong and Idaman Kwasa Damansara R4-1, the company is developing six other Idaman affordable housing projects in partnership with Permodalan Negeri Selangor Bhd – Idaman Kwasa Damansara R4-2 and R4-2A; Idaman Amani, Idaman Elmina 5 and Idaman Elmina 12 in City of Elmina; and Idaman Rimbayu in Bandar Rimbayu. Collectively, these eight projects encompass 15,000 units and carry a total GDV of RM4 billion.
Meanwhile, the construction segment remains resilient, supported by an external order book of RM228 million as at June 30, as well as substantial in-house construction works arising from property development activities.
Concurrently, the concession and facility management segment is poised for significant growth, supported by the proposed RM185 million acquisition of Konsortium PAE Sepakat Sdn Bhd, pending regulatory and shareholder approvals. The strategic takeover would expand the group’s portfolio with a concession to manage student hostels across seven polytechnic campuses, broadening its revenue base.
