Gagasan Nadi Cergas posts net profit of RM6.88m in 2Q, declares maiden 0.5 sen dividend

KUALA LUMPUR (Aug 27): Gagasan Nadi Cergas Bhd expects its construction tender book to exceed RM1 billion from RM700 million as at January 2019, as the group has been successfully pre-qualified in more public sector tenders.

"We are hopeful that some of these successful pre-qualifications would eventually enhance our order book of RM640 million as at June 30, 2019," its group managing director Wan Azman Wan Kama said in a statement yesterday.

The group’s current tender book consists of essential building projects, comprising healthcare facilities, tertiary education institutions and affordable housing projects nationwide.

“Gagasan Nadi Cergas currently is shortlisted for various essential public sector building projects, following successful pre-qualification exercise," Wan Azman said.

"Moving forward, we aim to continue playing our role in supporting the government’s initiatives in raising the bar of Malaysia’s essential buildings and quality of life," he added.

The group’s order book includes constructing the Cardiology Centre for Hospital Serdang, Maktab Rendah Sains Mara in Bagan Datuk, Rumah Selangorku in Putra Heights and Bukit Raja, 1Malaysia People’s Housing in Pasir Mas, and public residential development from Putrajaya Homes.

The group posted a net profit of RM6.88 million on revenue of RM71.02 million in the second quarter ended June 30, 2019 (2QFY19). There is no comparison, as the group was listed on the ACE Market of Bursa Malaysia in January.

It also declared its maiden interim dividend of 0.5 sen per share, totaling RM3.8 million for the financial year ending Dec 31, 2019 (FY19), payable on Sept 30.

The group posted a 24.9% decline in net profit to RM13.06 million in the cumulative six months (1HFY19), from RM17.39 million a year ago, on lower gross profit margin from construction projects. However, revenue for 1HFY19 was up 15% to RM139.91 million, from RM121.65 million in 1HFY18.

Gagasan’s construction segment contributed the lion’s share of total revenue in 1HFY19, constituting 88.1% or RM123.3 million.

The group’s recurring income segment, consisting of concession and facility management and utility services, raked in RM10.2 million or 7.3% of 1H19 revenue.

The property development segment contributed the balance RM6.5 million or 4.6% of 1H19 revenue.

Gagasan shares closed unchanged at 25.5 sen today, valuing it at RM192.02 million, with 196,600 shares traded.