KUALA LUMPUR (Sept 28): Gamuda Bhd fell into the red in the fourth financial quarter ended July 31, 2018 (4QFY18), due to a one-off loss on disposal of its 40%-owned associate Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) amounting to RM300 million, and impairment on investment in Gamuda Water Sdn Bhd totalling RM4 million.

The group posted a net loss of RM101.08 million in 4QFY18 compared to a net profit of RM102.75 million a year ago. This resulted in a loss per share of 4.1 sen for 4QFY18 compared with an earnings per share of 4.2 sen for 4QFY17.

But stripping off the one-off loss and last year’s one-off impairment loss on investment in Smart of RM98 million, Gamuda said it achieved a core net profit of RM203 million in 4QFY18, up by a marginal 1% compared with RM201 million a year ago.

Quarterly revenue came in 19.9% higher at RM1.21 billion from RM1.01 billion a year ago, on higher property sales of its projects in Vietnam and Singapore, as well as the work progress from its ongoing construction projects.

In a filing with Bursa Malaysia today, Gamuda said its property arm Gamuda Land Sdn Bhd posted RM1 billion in property sales for 4QFY18. Sales from its overseas projects in Vietnam and Singapore contributed 70% of overall sales.

However, the weak quarterly earnings dragged down the group's net profit for the full FY18 by 14.7% to RM513.88 million, from RM602.09 million a year ago, even though revenue climbed 31.6% higher to RM4.23 billion from RM3.21 billion in FY17.

Meanwhile, Gamuda Land posted a record-high property sales of RM3.6 billion for FY18, surpassing its RM3.5 billion sales target.

"The property sales grew by 50% compared with last year’s sales of RM2.4 billion on the back of stronger sales from the two projects in Vietnam, Celadon City in Ho Chi Minh City and Gamuda City in Hanoi, and GEM Residences in Singapore. Overseas sales contributed 70% of overall property sales," it said.

For FY19, Gamuda Land targets RM4 billion property sales from its local and overseas projects.

On prospects, Gamuda expects a lower profit contribution from its water concessions business in FY19 following the disposal of its 40% stake in Splash, which is the concession holder of the Sungai Selangor Water Supply Scheme Phase 1 and 3.

Nevertheless, the group anticipates a better overall performance in FY19 on the back of higher property sales, driven by overseas projects especially in Vietnam, the launch of new townships in Malaysia, the progress of the Klang Valley Mass Rapid Transit Line 2 project which continues to pick up pace, as well as steady earnings contribution from the expressway division.

Gamuda shares closed 14 sen or 4.35% higher at RM3.36 today, with 7.07 million shares done, bringing it a market capitalisation of RM8.29 billion.