Gadang's 4Q net profit climbs 20% on better margins, higher revenueBy Ahmad Naqib Idris / theedgemarkets.com | July 21, 2016 : 7:06 PM MYT
KUALA LUMPUR (July 21): Gadang Holdings Bhd's net profit climbed 20% to RM30.5 million for the fourth quarter ended May 31, 2016 (4QFY16) from RM25.4 million in the previous year, on improved margins from construction activities and higher contributions from its property division.
Revenue for the quarter jumped 47% to RM248.9 million from RM169.8 million a year earlier, its quarterly results filing today showed.
Its construction division reported revenue of RM180.1 million for the quarter from RM131.5 million, driving pre-tax profit growth to rise by 45% to RM71.5 million.
"This was mainly due to improved profit margins achieved for various ongoing projects," it said.
Meanwhile, its property division's revenue for the quarter was RM63.3 million, almost two times the RM33.7 million reported in the previous year, while pre-tax profit grew to RM17.4 million from RM10.8 million.
The group's utility division also posted positive growth, while its plantation division narrowed its losses during the quarter.
For the full financial year (FY16), net profit spiked 58% to RM94.2 million from RM59.6 million, in line with a 15% increase in revenue to RM676.1 million from RM587.4 million.
Going forward, Gadang said it is mindful of the weak economic conditions amid the numerous capital-intensive infrastructure projects to be rolled out within FY17.
The group said it will continue to focus on executing its ongoing projects to realign its property development plans to suit market conditions, expand its Indonesian utility operations, and optimise the plantation harvesting activities to improve revenue.
Gadang fell 4 sen or 1.69% to close at RM2.33 today, giving it a market capitalisation of RM605.18 million.
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