Gadang's 3Q net profit leaps 55% on higher contributions from construction, utility

by **Cals** Fri 29 Apr 2016, 05:14

Gadang's 3Q net profit leaps 55% on higher contributions from construction, utility

By Meena Lakshana / theedgemarkets.com | April 28, 2016 : 7:21 PM MYT

KUALA LUMPUR (April 28): Gadang Holdings Bhd's net profit jumped 55% to RM25.11 million or 11.23 sen a share in the third quarter ended Feb 29, 2016 (3QFY16), from RM16.17 million or 7.47 sen a share, on improved profit margins from construction activities and higher contributions from its utility division.

In a filing with Bursa Malaysia, Gadang said revenue grew 3.67% to RM175.92 million, from RM169.69 million in 3QFY15.

For the first nine months ended Feb 29 (9MFY16), net profit soared 86% to RM63.69 million or 28.07 sen a share, from RM34.22 million or 15.81 sen a share in the previous corresponding period. Accumulative revenue increased 2.31% to RM427.28 million, from RM417.64 million.

In notes accompanying its result announcement, Gadang said its construction division’s profit before tax jumped 144% to RM22.04 million in 3QFY16, from RM9.02 million in 3QFY15. Meanwhile, its accumulative profit before tax increased by 92.7% to RM50.28 million in 9MFY16, mainly due to improved profit margins achieved for various on-going projects.

As for its utility division, profit before tax increased to RM3.63 million, from RM2.35 million, on contribution from its newly-acquired subsidiary, PT Dewata Bangun Tirta.

The division's nine-month accumulative pre-tax profit grew by 65.8% to RM86.28 million, mainly due to improved profit margins from construction activities and higher contributions from property division.

On prospects, Gadang said it expects its performance for the current financial year to be another record year, with current levels of construction and property development activities.

The company said its construction division’s outstanding order book value stands at RM889.48 million, while the property division’s unbilled sales stands at RM243.49 million.

Gadang shares closed 6 sen or 2.87% lower at RM2.03 today, with a market capitalisation of RM530.18 million.