Gamuda 3Q profit rises on higher progress of MRT2 works, pays six sen dividend

KUALA LUMPUR (June 23): Gamuda Bhd's net profit grew 11% to RM170.93 million in its third quarter ended April 30, 2017, from RM152.69 million a year earlier, driven by higher progress of works on the MRT2 project.

Revenue for the quarter jumped 79% year-on-year to RM839.49 million from RM467.29 million, its Bursa Malaysia filing today showed. It said it will be paying a second interim dividend of six sen per share on July 28.

The construction group said it recorded higher progress on its underground and elevated works of the MRT2, i.e. the Klang Valley Mass Rapit Transit Line 2.

For the cumulative nine months (9MFY17), net profit rose 5% to RM499.34 million from RM474.04 million, as revenue climbed 45% to RM2.19 billion from RM1.51 billion.

Besides the construction division, its water and expressway concessions division also posted better performance after toll rates were raised at certain expressways.

Its property division also booked higher revenue due to better property sales for the Celadon City and Gamuda City in Vietnam, though profit contribution was lower due to the soft Malaysian property market.

The group anticipates good performance this year from the steady earnings of expressway concessions division and the ramping up of works for MRT2.

“The property division’s performance is expected to be stronger in the next few quarters due to the launches of several new projects in Malaysia and overseas,” said Gamuda in its prospects.

Some of its upcoming launches include Gamuda Gardens in Kuala Lumpur, with a gross development value (GDV) of RM10 billion, to be launched in July and twentyfive.7, a 257-acre mixed development with a GDV of RM3.8 billion in Kota Kemuning that will be launched in September.

Meanwhile, its ongoing construction works such as MRT1, MRT2, the Penang Transport Master Plan and the Pan Borneo Highway are progressing on schedule.

Gamuda closed unchanged at RM5.45, giving it a market capitalisation of RM13.31 billion. — theedgemarkets.com

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