Gamuda sees 1% dip in 4Q net profit

KUALA LUMPUR (Sept 28): Gamuda Bhd's net profit for the fourth financial quarter ended July 31, 2016 (4QFY16) inched down by 1% to RM152.1 million or 6.29 sen per share, from RM153.68 million or 6.39 sen per share a year ago, thanks to the cost savings arising from the completion of the Klang Valley Mass Rapid Transit Sungai Buloh-Kajang (KVMRT) Line 1 project.

In a bourse filing today, Gamuda also reported a 1.4% dip in 4QFY16 revenue to RM614.39 million from RM623.27 million a year ago due to the tapering of underground and elevated works of KVMRT Line 1.

For the full financial year ended July 31, 2016 (FY16), Gamuda saw its net profit decrease by 8.2% to RM626.13 million or 25.99 sen per share from RM682.13 million or 28.94 sen per share in FY15 as a result of the softening of Malaysia's property market as well as the tapering of the KVMRT Line 1 project.

Revenue for FY16 fell 11.6% to RM2.12 billion from RM2.4 billion a year ago.

For its construction division, Gamuda — the project delivery partner (PDP) for KVMRT Line 1 and KVMRT Sungai Buloh-Serdang-Putrajaya (Line 2) — shared that as of August, KVMRT Line 1 was at 91% completion.

"The project (KVMRT Line 1) is on target for Phase 1 completion in December 2016 and full completion by July 2017, with no significant cost overruns so far," it added.

The systems works for the Sungai Buloh to Kajang Line has reached 92% as scheduled and 44 electric trains, of which 22 trains have been earmarked for Phase 1 operations, have been delivered to the depots.

Gamuda said the contract award programme for KVMRT Line 2 is on track, with 22 work packages for construction of MRT Line 2 awarded, comprising eight advance works packages, four viaduct packages, one underground work package, six system work packages, two designated supplier work packages and one depot work package.

"The tenders and awards for the remaining main elevated civil works and system package are expected to be substantially completed by the fourth quarter of 2016," said the firm.

As for the Penang Transport Master Plan, Gamuda shared that the detail environmental impact and assessment studies are at the final stages and are due to be completed by end-2016. The PDP agreement for the project is expected to be executed by the first quarter of 2017.

For its property development division, Gamuda shared that the remaining gross development value of its new and existing projects currently stands at RM55.74 billion.

Ongoing local projects include Madge Mansions and The Robertson in Kuala Lumpur, HighPark Suites in Kelana Jaya, Jade Hills in Kajang, Bandar Botanic in Klang, Horizon Hills in Iskandar Johor Region and Bukit Bantayan Residences in Kota Kinabalu.

As for its water division, Gamuda said an agreement with the Selangor State Government on the disposal of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd is expected to be reached by year end.

Gamuda shares closed up 6 sen (1.2%) to RM4.90 today, and for a market capitalisation of RM11.86 billion. — theedgemarkets.com

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