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.