PETALING JAYA: Gadang Holdings Bhd reported a net profit of RM13.3 million for the third quarter ended Feb 28, a 47.1% decline compared with RM25.14 million recorded for the corresponding quarter in 2018.
The construction firm attributed the reduction in earnings to recognition of some variation orders for completed construction projects in the previous year along with lower profit recorded for the Capital City project in the current year.
For the quarter under review, its revenue rose 34.5% to RM205.33 million compared with RM152.68 million in the corresponding quarter of the preceding year.
Its nine-month net profit increased 34.8% to RM46.87 million from RM71.85 million, while revenue grew 22% to RM502.99 million from RM412.29 million.
According to Gadang’s filing with Bursa Malaysia, its construction division outstanding order book currently stands at RM1.3 billion that will provide the company with a stable income visibility going forward.
However, the overall weakness in the property market has affected its sales and impacted the performance of its property division.
“The division has introduced more aggressive marketing efforts to promote sales of its existing on-going and completed projects. With unbilled sales of RM93.1 million and planned new launches, the property division is expected to deliver positive performance in this financial year.”
Looking ahead, Gadang foresees a challenging period for the group, taking into account the competitive market landscape and has initiated active tender participation for domestic infrastructure projects.
“Barring unforeseen circumstances, the group expects to remain profitable in the current financial year.”
