Gamuda ends FY19 on a strong note

KUALA LUMPUR (Sept 28): Gamuda Bhd returned to the black in the fourth financial quarter ended July 31, 2019 (4QFY19), posting a net profit of RM184.95 million compared to a net loss of RM103.64 million a year ago.

The return to profitability was mainly due to the absence of a one-off loss arising from the disposal of its 40%-owned associate Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) and a one-off discount on its 80%-owned subsidiary Gamuda Water Sdn Bhd’s trade receivables last year.

As a result, it recorded an earnings per share of 7.49 sen for 4QFY19 compared to a loss per share of 4.2 sen for 4QFY18.

Revenue for the quarter rose 23.7% to RM1.5 billion from RM1.21 billion a year ago.

For the full FY19, the group saw net profit rise 33.2% to RM706.11 million from RM530.18 million in the previous year, while revenue rose 8.3% to RM4.57 billion from RM4.22 billion in FY18.

In a bourse filing yesterday, Gamuda said the property division sold RM3.1 billion worth of properties in FY19 — its second-highest annual property sales. This is still lower than its record-high sales of RM3.6 billion achieved last year due to a challenging property market. Overseas projects contributed two-thirds of overall sales in FY19.

"The two developments in Vietnam, namely Gamuda City in Hanoi and Celadon City in Ho Chi Minh City continued to deliver steady results and remained the biggest contributor of overseas sales.

"Sales at the now-completed 661 Chapel Street, a luxury high-rise condominium in Melbourne, Australia is on-going, while construction works for Anchorvale Crescent in Singapore commenced in June," it added.

The group anticipates next financial year’s performance to be driven by overseas property sales, especially Vietnam, and the progress of Mass Rapid Transit (MRT) Line 2 project that continues to pick up pace.

Gamuda said the MRT Line 2's elevated works package is on track at 59% completion, while the underground works package is on track at 60% completion at end-July.

As for its Pan Borneo Highway, Sarawak job from Pantu Junction to Btg Skrang, Gamuda said overall cumulative progress at end-July was 45%.

Gamuda shares closed down nine sen or 2.47% at RM3.56 yesterday, with 2.04 million shares done, bringing it a market capitalisation of RM8.8 billion.

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