CSR Visit
Strengthened Gadang Group’s CSR efforts through a community outreach visit to persons with disabilities shelter home, fostering meaningful engagement and providing support to the local community.
Gadang secures RM95mil contract to widen KL-Karak Highway
KUALA LUMPUR: Gadang Holdings Bhd’s wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd, has accepted a RM95.14mil contract for earthworks under the proposed widening of the Kuala Lumpur–Karak Highway.
In a filing with Bursa Malaysia, the group said the letter of award was issued by AFA Construction and Engineering Sdn Bhd for Package 1A (CH19200–CH25764), covering construction and completion of earthwork and related works for the highway widening project spanning KM19.20 to KM64.50.
Gadang to buy 11-acre Johor Baru land for RM75.48mil
PETALING JAYA: Gadang Holdings Bhd is proposing to acquire a parcel of freehold land measuring 11.179 acres in Johor Baru, Johor, from Tanahmas Kapital Sdn Bhd for RM75.48mil.
In a filing with Bursa Malaysia, the construction firm said the proposed acquisition is in line with Gadang’s objective to replenish and expand its land bank for future development, particularly in Johor.
“In undertaking the proposed acquisition, Gadang has considered the development potential of the said Land, taking into account its freehold tenure, strategic location within Johor Baru and the established surrounding residential and commercial developments.”
Gadang earnings visibility intact with latest job win
PETALING JAYA: Gadang Holdings Bhd’s engineering, procurement, construction and commissioning (EPCC) new contract win is expected to boost the group’s current outstanding order book to about RM903.5mil, says TA Research.
This is after factoring in an assumed RM80mil order book burn rate in the first quarter of financial year 2026 (1Q26).
It also represents 2.8 times of its financial year 2026 construction revenue forecast, providing healthy earnings visibility, said the research house in a note to clients.
The Gadang-JS Solar Consortium, comprising Gadang’s wholly-owned subsidiary Gadang Engineering (M) Sdn Bhd (51% stake) and JS Solar Sdn Bhd (49% stake), had recently secured an EPCC contract worth RM52mil from Tenaga Aspirasi Sdn Bhd for the development of a 15MWac large-scale solar photovoltaic (LSSPV) power plant in Tawau, Sabah.
Gadang secures RM52mil solar project in Sabah
PETALING JAYA: Gadang Holdings Bhd has accepted a letter of acceptance from its indirect 60%-owned subsidiary, Tenaga Aspirasi Sdn Bhd, to undertake the engineering, procurement, construction and commissioning (EPCC) of a 15 MWa.c. large-scale solar photovoltaic (LSSPV) power plant project in Tawau, Sabah, worth RM52mil.
In a filing with Bursa Malaysia, Gadang said the contract was secured via a consortium comprising its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd and JS Solar Sdn Bhd.
“The consortium will undertake the full EPCC scope including design, procurement, construction, installation, testing and commissioning of the LSSPV plant.
New property developments to bolster Gadang
PETALING JAYA: Gadang Holdings Bhd’s near-term priority should be to reinforce cost optimisation efforts and enhance profit margins, analysts say.
To support a more sustainable earnings trajectory, a disciplined cost management strategy must be implemented in tandem with active participation in selective tender opportunities, TA Research said in a report.
The research house also remained cautious on Gadang’s job replenishment outlook.
As of end-May 2025, Gadang’s construction order book stood at RM839mil, representing 1.8 times construction revenue for the group’s financial year 2025, ended May 31 (FY25) .
Lower contract wins expected for Gadang
PETALING JAYA: TA Research has slashed its earnings forecasts for Gadang Holdings Bhd amid lower expectation of new contract wins.
In a note, the research house reduced the earnings estimates for the financial year 2025 (FY25) by 1.6%, followed by FY26 (26.7%) and FY27 (6.8%).
“Reflecting the absence of new job wins in FY25 and a slower-than-expected replenishment rate, we have revised our new job assumptions for FY26–FY27 lower from RM500mil to RM300mil per annum.”
Following the earnings revision, TA Research also cut its target price for the stock to 22 sen from 28 sen.
Given the negative risk reward profile, Gadang’s rating was also downgraded from “hold” to “sell” by TA Research.
On June 20, Gadang’s wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd, announced a RM92.5mil construction contract from AFA Construction and Engineering Sdn Bhd to expand the Kuala Lumpur-Karak Highway.
Gadang bags RM92.5mil contract to widen KL-Karak Highway
KUALA LUMPUR: Gadang Holdings Bhd’s wholly owned subsidiary, Gadang Engineering (M) Sdn Bhd, has secured a RM92.5mil contract to widen the Kuala Lumpur-Karak Highway.
In a filing with Bursa Malaysia, Gadang said it had accepted a letter of award from AFA Construction and Engineering Sdn Bhd to undertake earthworks and associated works for Package 2A of the Kuala Lumpur–Karak Highway widening project from KM39.00 to KM61.50.
The contract is for 18 months and is scheduled for completion in the fourth quarter of 2026.
Property segment remains Gadang’s growth driver
PETALING JAYA: Gadang Holdings Bhd’s property division is expected to remain a key contributor, driven by attractive sales incentives and an aggressive pricing strategy.
According to TA Research, the group’s construction order book stood at RM1bil as of end-November 2024, equivalent to 3.6 times its financial year 2024 (FY24) construction revenue, with unbilled property sales at RM329mil.
Following stronger-than-expected financial results for the first half of FY25 (1H25), TA Research revised its earnings estimates for FY25-FY27 upwards by 14.5%, 4.9% and 4.1%, respectively.
As a result, it raised its target price to 42 sen per share from 31 sen previously, upgrading its rating on the stock to “buy.”
Excluding a one-off gain of RM6.5mil, Gadang reported 1H25 core earnings of RM6.9mil – beating TA Research’s expectations.
Gadang to sell leasehold land in Damansara Perdana for RM65mil
KUALA LUMPUR (Oct 11): Gadang Holdings Bhd (KL:GADANG) is disposing of a leasehold land in Damansara Perdana for RM65 million to partially finance its existing construction projects and repay borrowings.
“The key rationale for the proposed disposal is to strengthen Gadang Group’s cash flow position and to reallocate its cash flow to its ongoing and future construction projects. It is also in line with Gadang Group’s strategy to pare down its existing borrowings to improve its gearing level,” the group told Bursa Malaysia.
In its filing, the group said it has — via its wholly-owned unit Gadang Construction Sdn Bhd — inked a deal to sell the land, measuring 10,779 sq m, to property developer Opulent Abode Sdn Bhd.
Of the gross proceeds of RM65 million, RM49.68 million will be allocated to part-financing of existing construction projects, RM13.72 million for repayment of bank borrowings and RM1.6 million for incidental expenses in relation to the proposed disposal.