Gadang’s subsidiary bags RM100.34mil Central Spine Road subcontract
KUALA LUMPUR, Sept 17 — Gadang Holdings Bhd’s wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd (GESB), has secured a RM100.34 million subcontract works for Central Spine Road Package 2 from Binary Vista Sdn Bhd.
In a filing with Bursa Malaysia, the company said GESB would be the subcontractor to undertake demolition, site clearance, earthwork and access bridge to Kuala Berang, Terengganu.
It said the subcontract is expected to contribute positively to the earnings and net assets of Gadang for the financial year ending May 31, 2022 and onwards, during the duration of the subcontract.
Gadang posts quarterly net profit of RM3.7mil
PETALING JAYA: Gadang Holdings Bhd posted a RM3.7mil net profit for its fourth quarter ended May 31, 2021 (Q4FY21) compared with a loss of RM259,000 a year ago, while revenue was 32% higher to RM152.3mil.
The group is involved in civil engineering and construction, property development, water supply, and mechanical and electrical engineering services.
In a filing with Bursa Malaysia, the company said the improved Q4 earnings were due to its construction and utilities divisions, while the higher revenue was mainly due to the property division’s better sales for some ongoing projects.
Focus on landed, Affordable developments
It has been a busy two years for Gadang Land Sdn Bhd, the property development arm of Gadang Holdings Bhd. Currently, the company has four new launches worth RM469 million in gross development value (GDV) planned until the first quarter of next year. They are Verdia, a townhouse project situated in its new 62.84-acre residential development Akasia in Semenyih; the second phase of townhouses at Elegan Residensi in Taman Putra Perdana, Puchong; an affordable apartment project (Cyberjaya Phase 3C) in Laman View; and Phase 1 of a 78-acre residential development in Gelang Patah, Johor.
Gadang Land launched Maple Residence’s Phase 2 (Amaya), comprising stratified landed homes, in Laman View, Cyberjaya, in August and the last block of condos in The Vyne in Sungai Besi at the end of last year. The developer also recently completed and handed over 2-storey strata terraced units at Maple Residence Phase 1 and PR1MA Two apartment units at Laman View.
Gadang expected to secure more contracts
KUALA LUMPUR: As construction activities pick up gradually following the easing of the lockdown, Gadang Holdings Bhd is expected to secure more contracts.
Recently, Gadang Holdings secured two ECRL packages worth RM81mil amid the rebound in economic activities.
JF Apex Securities Bhd said the group is expected to win more contracts, adding that a mounting stimulus package, low interest rates and positive development on Covid-19 vaccine would help stimulate the country’s economic activities.
“We maintain our financial year ending May 31,2021 forecast (FY21F) net earnings forecast and introduce our FY22F net earnings forecast of RM60.4mil on the back of acceleration of economic rebound from March’s bottom as well as firm government stance in supporting traditional business sectors in tourism, oil and gas, and services, ” it said.
Gadang tenders RM27mil more ECRL jobs
KUALA LUMPUR: Gadang Holdings Bhd will see some impact on its profit margin from the East Coast Rail Link (ECRL) works should the Covid-19 pandemic be prolonged.
Gadang’s unit Gadang Engineering (M) Sdn Bhd project director Abdul Rizal Abdul Rahim said the company’s targeted profit margins from the ECRL project is at 3%-5%.
“It is lowered due to the costs incurred from the pandemic. We are expected to incur additional costs actually, ”.
“For example, previously we could do this project with 100% capacity but in certain months now, we can’t anticipate that we will be able to operate at full capacity due to the pandemic.
Gadang secures two ECRL work packages worth RM81mil
KUALA LUMPUR (May 28): Gadang Holdings Bhd’s wholly-owned unit Gadang Engineering (M) Sdn Bhd has secured two contracts worth a combined RM81.18 million from China Communications Construction (ECRL) Sdn Bhd in respect of the East Coast Rail Link (ECRL) project.
Both the works involve the construction and completion of subgrade earthworks and drainage, according to a filing to Bursa Malaysia today.
The first contract, which commenced from today (May 28) and is expected to be completed on June 30, 2022, is worth RM24.11 million, while the second contract — which shall start on June 15, 2020 and is slated for completion on Dec 15, 2022 — is worth RM57.07 million.
The ERCL projects are expected to contribute positively to the group’s future earnings.
Shares of Gadang closed 1.5 sen or 3.13% lower at 46.5 sen today, giving it a market capitalisation of RM338.55 million.
While the counter had, over the past year, fell 43.64% from 82.5 sen, it has risen some 98% from 23.5 sen on March 23.
Gadang sets property sales target of RM272mil for FY20
GADANG Holdings Bhd has targeted to achieve RM272.6 million sales revenue from its property development division in this financial year, up 68% year-on-year (YoY), driven by its new launches according to its MD (property division) Datuk Ling Hock Hing.
Gadang intends to launch three property development projects in Cyberjaya and Semenyih, Selangor, and Salak South, Kuala Lumpur (KL) in financial year 2020 (FY20), ending May 31, 2020.
“As of August this year, the group’s total unbilled sales amounted to RM126.5 million,” he said after the company’s AGM in KL yesterday.
The company now has a land bank of 281.7 acres (114ha) with a gross development value of RM2.52 billion.
Among its future developments include a property development on a 21.1 acre site owned by Kwasa Land Sdn Bhd and 9.5 acres in Taman Melawati, KL.
Gadang’s nine megawatt mini hydropower concession project in Indonesia is 73% completed as of August 2019.
Gadang MD for construction division Khew Check Kiet (picture) foresees the coming year as challenging for the construction industry as there is minimal allocation from the government in the recently announced Budget 2020.
Gadang to bid for Pan Borneo Sabah packages
KUALA LUMPUR: Gadang Holdings Bhd plans to participate in the open tender for the three work packages under the Sabah portion of the Pan Borneo Highway worth RM925 million in the first quarter of 2020.
This is in addition to some RM1 billion worth of construction jobs it has already bidded for.
Khew Check Kiet, managing director of Gadang’s construction division, said the group is also awaiting the opportunity to submit its bids for the Sarawak portion of the Pan Borneo Highway, as well as the East Coast Rail Link (ECRL) project, for which it has been shortlisted.
Khew, who was speaking to reporters after Gadang’s annual general meeting yesterday, said the group expects the coming year to be challenging, especially for its construction division.
“The recent Budget [2020] announced by the finance minister [shows] that the allocation for government projects is quite minimal as compared to the previous year’s … and most of the budget [allocations] were for ongoing projects.
TRX awards Gadang RM38.5mil contract for North-South bridge
KUALA LUMPUR: TRX City Sdn Bhd, the master developer of the upcoming international financial district Tun Razak Exchange, has awarded Gadang Engineering (M) Bhd a RM38.5 million contract to build a vehicular and pedestrian bridge connecting its North and South parcels.
TRX City said Gadang will construct the main bridge deck over Jalan Sultan Ismail that will link two sections – the 57-acre North parcel which is currently under construction, and the 13-acre South Parcel.
“The 67- meter single span bridge will also include a cantilevered structure to accommodate pedestrian walkway, and a utility corridor located within the truss system to host power and other utilities connections,” it said in a statement.
As the future central business district of Kuala Lumpur, and its most accessible district, TRX City said seamless connectivity is a vital part of TRX.
TRX features an integrated MRT interchange station that hosts Sungai Buloh-Kajang line and the Sungai Buloh-Serdang-Putrajaya line.
This is further supported by direct links to major thoroughfares such as Jalan Tun Razak, the MEX highway, SMART Tunnel and upcoming DUKE 3 (Setiawangsa-Pantai Expressway).
Gadang wins TRX contract worth RM86mil
KUALA LUMPUR (Aug 20): Gadang Holdings Bhd has secured a contract worth RM86.09 million to construct and complete the public realm works (Phase 1) of the Tun Razak Exchange (TRX).
Gadang said in an exchange filing the contract was awarded to its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd, by TRX City Sdn Bhd today.
The proposed project will commence on Sept 1, and is expected to be completed by the third quarter of 2019, read the filing.
It said the project is expected to contribute positively to its earnings and net assets for the financial year ending May 31, 2019.
Shares in Gadang edged up one sen or 0.68% to close at 74 sen today, for a market capitalisaiton of RM492.98 million.