Gadang narrows losses in 4Q on higher construction revenue

• For the full year, Gadang returned to the black with a net profit of RM4.71 million, compared to a net loss of RM29.3 million in FY2023.

KUALA LUMPUR (July 24): Gadang Holdings Bhd’s (KL:GADANG) net loss narrowed to RM9.37 million for its fourth quarter ended May 31, 2024 (4QFY2024) from RM27.7 million a year ago, as revenue expanded due to higher contributions from its construction division.

Revenue rose 32% to RM150.5 million from RM114 million, according to the construction firm’s bourse filing.

For the full year, Gadang returned to the black with a net profit of RM4.71 million, compared to a net loss of RM29.3 million in FY2023. This turnaround was driven by higher contributions from the property division, and reduced impairments and accounting provisions compared to the previous year.

Full-year revenue increased to RM583.6 million, up 18% year-on-year from RM496.1 million, primarily due to higher progress in construction projects and better sales in property development projects.

Looking ahead, Gadang anticipates a challenging and competitive FY2025 due to volatile material prices, inflation, and high interest rates. Despite these difficulties, the group said it will actively seek new business opportunities to strengthen its revenue.

Gadang said its construction division will continue to seek new opportunities to expand its order book, while ensuring the timely completion of current projects.

It said the design and development project for the Klang Valley Data Centre in Cyberjaya it had secured recently, which is expected to commence in 1QFY2025, has boosted the division’s outstanding order book to RM1.13 billion as of 4QFY2024.

In the property division, Gadang achieved sales of RM274.06 million, a 35% increase over FY2023. With RM202.30 million in unbilled sales and future launches, the group expects the division to boost its earnings in FY2025.

Gadang’s shares closed 1.5 sen or 3.09% lower at 47 sen on Wednesday, valuing the group at RM338.62 million.

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