Ingenieur Gudang reports higher 2Q profit on disposal gain, higher construction revenue

• Revenue for the quarter more than doubled to RM12.29 million — its highest since  4QFY2020 — from RM4.57 million in 2QFY2023, due to new project acquisitions and improved progress recognition in the construction segment.

KUALA LUMPUR (July 19): Construction company Ingenieur Gudang Bhd (KL:INGENIEU) reported a net profit of RM6.48 million for the second quarter of its financial year 2024 (2QFY2024), driven by gains from asset disposals and higher construction revenue.

The group's net profit for 2QFY2024 ended June 30, 2024 was over 27 times higher than the RM234,000 it made for 2QFY2023, which raised its earnings per share to 0.43 sen from 0.02 sen, its Friday bourse filing showed.

Revenue for the quarter more than doubled to RM12.29 million — its highest since  4QFY2020 — from RM4.57 million in 2QFY2023, due to new project acquisitions and improved progress recognition in the construction segment. During the quarter under review, it recorded a RM1.7 million gain on the disposal of assets held for sale.

No dividend was declared.

For the first half of FY2024 (1HFY2024), Ingenieur Gudang’s net profit grew 77% to RM7.5 million or 0.50 sen per share, from RM4.24 million or 0.40 sen per share in 1HFY2023. Cumulative revenue rose 52.44% to RM19.73 million from RM12.94 million.

Looking ahead, Ingenieur Gudang aims to enhance its order book. It also expects its property investment division to achieve better tenancy levels amid the moderate growth outlook for the country.

"We will continue to identify real estate comprising commercial and industrial properties including factories, warehousing and other properties with good prospects and located within strategic areas that are able to yield a reasonable return within a reasonable period of time," it said.

Ingenieur Gudang’s shares closed unchanged at five sen on Friday, giving the company a market capitalisation of RM75.83 million. Year to date, the stock has retreated four sen or 44.44%.

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