PETALING JAYA: Gadang Holdings Bhd’s net profit for the first quarter ended Aug 31, 2019 fell 10.3% to RM14.85 million from RM16.54 million a year ago, mainly due to widened losses from the investment holding division and lower profit in the property division.
Its revenue however, rose 14.3% to RM147.6 million from RM129.15 million, helped by the construction division.
Looking ahead, Gadang said it is cautiously optimistic that major construction initiatives such as the revival of the East Coast Rail Line project, Pan Borneo Highway project and the development of Bandar Malaysia infrastructure components will be positive for the group.
Its construction division will continuously bid for new infrastructure contracts to refresh its order book and to better manage on its timely project execution. The division’s existing outstanding order book stands at RM1.14 billion which will be able to sustain its operation for the next two years.
Meanwhile, it said the property division will realign its new launches of property development projects to match market demand.
“Based on the total unbilled sales of RM126.5 million and the sales progress of the newly launched townhouse project located in Putra Perdana, the division is expanding on its customer segments to drive sustainable growth.”
The utility division is expected to continue to contribute a sustainable recurring income stream from the concession water treatment assets, which upon the completion of the 9MW mini-hydro power plant under construction in Lintau, Sumatera will further increase and strengthen the overall recurring income stream.
