KUALA LUMPUR (Nov 23): Gabungan AQRS Bhd reported an 83% surge in net profit to RM9.43 million in the third quarter ended Sept 30, 2017 (3QFY17) from RM5.16 million a year ago, on improved operating margins on ongoing construction projects.

The projects include the Sungai Besi-Ulu Kelang highway, PR1MA homes in Kuala Kuantan, Gambang, as well as the Pusat Pentadbiran Sultan Ahmad Shah in Pahang.

Quarterly revenue for 3QFY17 was 16.6% higher at RM80.45 million compared with RM69 million in 3QFY16, due to higher revenue from the work in progress for the construction projects.

The group also declared a special dividend of 1.5 sen per share and an interim dividend of 0.5 sen per share, amounting to RM8.82 million, payable on Dec 21.

For the nine months ended Sept 30, 2017 (9MFY17), Gabungan AQRS reported a more than two-fold increase in net profit to RM32.8 million from RM15.18 million a year ago. Revenue for 9MFY17 was up 30.8% to RM319.23 million from RM243.99 million in 9MFY16.

In line with the group’s monetisation exercise to reduce its gearing ratio through disposal of its selected land bank, an improvement was recorded to the group’s net profit as a result of the reduction in finance cost due to the gradual repayment of loans. Its net gearing ratio as at 3QFY17 was 0.36 times compared with 0.67 times in FY16 and 0.78 times in FY15.

From 1QFY18 onwards, the group targets to achieve a net gearing of 0.4 times.

Gabungan AQRS’s outstanding construction order book stood at RM2.58 billion as at Nov 16, 2017. As for its property division, the group’s property development projects currently have unbilled sales of sold units amounting to RM145.8 million and unbilled sales in relation to unsold units amounting to approximately RM580.4 million.

The group’s shares were down one sen or 0.52% to close at RM1.91 today, for a market capitalisation of RM842.3 million.