GDB 4Q net profit up 7% to RM8.54m, declares one sen dividend

GDB 4Q net profit up 7% to RM8.54m, declares one sen dividend
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KUALA LUMPUR (Feb 26): Construction services firm GDB Holdings Bhd's net profit for the fourth quarter ended Dec 31, 2020 rose 7.1% year-on-year to RM8.54 million from RM7.96 million.

In a bourse filing, GDB said revenue for the quarter climbed 17.7% to RM128.11 million from RM108.84 million previously, due mainly to construction progress of ongoing projects as well as maiden contributions from its newly-secured 8 Conlay project.

Earnings per share was 1.37 sen against 1.28 sen earlier.

It declared a second interim dividend of one sen per share totalling RM6.25 million, to be paid on March 26, 2021.

However, for the financial year ended Dec 31, GDB said its net profit dipped to RM25.69 million against RM29.13 million a year ago despite posting higher revenue of RM362.81 million versus RM322.77 million.

In a separate statement, GDB group managing director Cheah Ham Cheia said the firm’s success in securing new contracts in 2019 and 2020 places it favourably to withstand the dampened property market for the next few years.

“We are committed to making good progress in delivering high-end projects for prominent developers and project owners during this crucial time,” he said.

Cheah said that over the longer term, GDB was optimistic that the recent commencement of the Covid-19 vaccination programme in Malaysia, alongside the government’s economic stimulus initiatives, would aid economic recovery and boost market sentiments.  

“To weather these challenging circumstances, we will remain prudent in financial practices while implementing appropriate measures to achieve smooth construction projects for our ongoing projects.

“At the same time, we have a tender book of RM1.3 billion currently, and have set a target to win RM500 million worth of new jobs in 2021 to bolster our performance further,” he said.

At midday break today, GDB shed 1.73% or 1.5 sen to 85 sen, valuing it at RM531.25 million.