Gadang eyes RM75m pre-tax profit for FY15

KUALA LUMPUR: Gadang Holdings Bhd aims to achieve RM75 million pre-tax profit for the financial year ending May 31, 2015 (FY15) compared with RM63 million achieved a year ago, helped by its construction and property businesses, said chief financial officer Kok Pei Ling.
"We foresee this financial year to be better than last year," she told reporters after its AGM yesterday. Construction currently contributes 80% to the company's revenue.
Gadang Engineering (M) Sdn Bhd managing director Khew Check Kiet said its current order book of RM1.3 billion will last for at least two years, up till 2016.
The contracts in hand include Shah Alam Hospital, MRT (Package V2) Kota Damansara-Dataran Sunway and site preparation works for the Refinery and Petrochemical Integrated Development project (Rapid).
Khew said the group is eyeing RM5 billion worth of contracts, including design- and-build works for the Kinrara-Damansara Expressway, permanent infrastructure works within the Rapid site, KVMRT Line 2, Maju Expressway extension to KLIA, the West Coast Expressway as well as the Damansara-Shah Alam and Sungai Besi-Ulu Kelang highways.
"As announced by the prime minister in the latest budget, there are five major highways coming up ... besides that we also have bids on the Pengerang side (Rapid). Combined, it is about RM200 billion worth of projects to be rolled out. I believe it is big enough for everybody. We will be actively participating when it is rolled out," he added.
Gadang Land Sdn Bhd managing director Ling Hock Hing said it currently has 350 acres under its property division, including the recent acquisition of 9.5 acres in Taman Melawati.
The launches planned for next year have a total gross development value of RM250 million to RM300 million.
Gadang also has four water concessions with a total capacity of 980 litres per second and a mini hydro power concession with 9MW capacity in Indonesia under its utilities division.
Its plantation division has a total planted area of 2,600 acres out of 5,181 acres of land in Ranau, Sabah.