KUALA LUMPUR (Oct 27): Gadang Holdings Bhd saw its net profit tumble some 20% to RM16.62 million or 6.46 sen per share for the first quarter of its financial year ended 31 May 2017 (1Q FY17) from RM20.86 million or 9.61 sen per share.
According to its filing to the bourse today, the construction and property player’s revenue for the quarter fell to RM104.6 million from RM149.38 million due to lower revenue inflow from its construction division. This was mainly due to the completion of some projects, the company said.
“Presently [the construction division’s] outstanding order book stands at some RM603.7 million,” it said. It was reported in July that the company's order book stood at RM615 million.
“This division is actively bidding for new contracts involving Government’s infrastructure and building projects. On-going projects are being executed on a fast track basis to optimise on cost saving and design effectiveness.”
Meanwhile, profit before tax for its property division fell from RM16.65 million to RM13.45 million despite an uptick in revenue. The group said this was due to higher development progress achieved for projects with lower margins.
“The property division’s focus is on building affordable homes for the current financial year, in line with market demand. Continuous efforts are directed at securing property joint ventures with land owners having approved development plans,” the company said.
Gadang’s earnings per share for the quarter were down to 6.46 sen per share compared with 9.61 sen per share in the previous year’s corresponding quarter.
On Oct 13, Gadang had secured the development rights for a 24.08-acre plot of land in Kwasa Damansara, Sungai Buloh from Kwasa Land Sdn Bhd.
Gadang is expected to give Kwasa Land a total financial return of RM165 million for both the land cost and profit sharing to the company.
Gadang closed up 1 sen or 0.3% at RM3.29 today for a market capitalisation of RM850.87 million. The counter saw some 1.49 million shares traded with an intra-day high of RM3.32.