Friday 29 Mar 2024
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KUALA LUMPUR (Oct 19): Construction engineering firm Gadang Holdings Bhd’s net profit dropped 10% to RM16.54 million from RM18.34 million in the first quarter ended Aug 31, 2018 (1QFY19) due to lower revenue from its construction and utilities segment as well as higher expenses.

In a filing with Bursa Malaysia today, the group said other expenses for the quarter under review increased to RM1.06 million compared with the preceding year mainly due to unrealised loss on foreign exchange.

Earnings per share fell to 2.5 sen versus 2.79 sen in 1QFY18, while revenue rose 11% to RM129.15 million from RM116.74 million last year.

It said revenue from its property segment expanded 59% in 1QFY19 to RM53.85 million from RM33.79 million mainly due to higher work progress and better sales achieved from on-going projects.

However its construction segment’s revenue declined 9% to RM69.57 million from RM76.76 million on lower work progress from existing projects. The utilities segment revenue also fell 8% due to an unrealised loss on foreign exchange, it said.

Moving forward, the board is of the view that the group’s operating environment will be challenging going forward.

It said based on the existing infrastructure projects under implementation, a reasonable earnings outlook is expected for the financial year ending May 31, 2019.

“In addition, the division’s outstanding order book of some RM1.51 billion shall provide decent income viability for the construction division,” it said.

Its property segment is also expected to deliver a satisfactory performance on the back of RM106.6 million in unbilled sales as well as planned new launches.

Gadang’s shares closed down one sen or 1.46% to 67.5 sen, for a market capitalisation of RM446.66 million. Over the past year the stock has declined 44%.

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