Gadang Holdings net profit rises on higher revenue from construction

PETALING JAYA: Gadang Holdings Bhd’s net profit in the first quarter (Q1) ended Aug 31, 2017, rose 9.8% to RM18.3 million, from RM16.7 million in the previous corresponding quarter on the back of higher revenue in the construction division.
Revenue for the quarter grew 12.4% to RM116.7 million compared with RM103.9 million in the same period last year.
In a filing with the stock exchange today, Gadang said its construction revenue for the quarter increased to RM76.8 million against RM42.1 million previously, mainly due to progress from the existing project namely Rapid package 301 and 402; commencement of work for new projects – KVMRT V206 project, TRX project and Cyberjaya Hospital project; and recognition of some variation orders for completed projects.
On prospects, the company said amidst the challenging market conditions, the board anticipates the current financial year’s performance will remain satisfactory as the on-going projects are likely to support the group’s sustainable profitability moving forward.
Gadang is an investment holding company while its subsidiaries are principally involved in civil engineering and construction, property development, water supply and mechanical & electrical engineering services.
Gadang shares slid slightly by 0.82% to RM1.21 today with 2.1 million shares traded. It has a market capitalisation of RM796.5 million.