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Thursday, July 30, 2015

Gadang 4Q net profit almost triples on higher property, construction contributions

KUALA LUMPUR (July 30): Gadang Holdings Bhd ( Financial Dashboard)’s net profit in the fourth quarter ended May 31, 2015 (4QFY15) almost tripled to RM24.55 million or 11.35 sen from RM8.59 million or 4.37 sen a year ago, on higher contributions from its property and construction segments.

Its revenue for the quarter was also up 19.22% to RM170.48 million from RM142.99 million in 4QFY14, also primarily due to the same reasons, according to its filing to Bursa Malaysia today.

The engineering and construction company also proposed a first and final single-tier dividend of 5 sen per share for FY15 (FY14: 4 sen per share), subject to shareholders’ approval at the company’s forthcoming annual general meeting (AGM).

For the full year (FY15) Gadang (fundamental: 1.7; valuation: 3) saw its net profit come in at RM58.77 million or 27.16 sen per share, up 35.96% from RM43.23 million or 21.98 sen per share in FY14.

Full year revenue grew 7.92% to RM588.12 million from RM544.95 million in FY14.

Gadang expects its financial year 2016 (FY16) results to be better than its stronger FY15 results, due to positive earnings outlook from its ongoing construction projects and continuous sales by its property division at flagship projects.

These include The Vyne residential project in Salak South, its joint development with Cyberview Sdn Bhd in Cyberjaya and another joint venture development with Capital City Sdn Bhd for an integrated development in Tampoi, Johor Bahru.

Gadang’s shares closed one sen or 0.7% higher at RM1.44 today, with a market capitalisation of RM310.96 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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