GDB 1Q net profit drops 18.7% to RM5.72m on higher expenses

KUALA LUMPUR (June 19): GDB Holdings Bhd's net profit for the first quarter ended March 31, 2020 (1QFY20) fell 18.7% to RM5.72 million, from RM7.04 million a year earlier, due to higher profit recognition from completed projects in the preceding financial period, lower interest income, and higher administrative and other expenses incurred for the current financial period under review.

In a bourse filing today, GDB said revenue for the quarter rose 54% to RM99.88 million versus RM64.76 million a year earlier.

Earnings per share (EPS) slipped to 0.92 sen from 1.13 sen previously.

Reviewing its performance, GDB said its outstanding order book stood at a healthy level of RM1.05 billion as at March 31, 2020.

GDB said its order book comprises construction works for AIRA Residence in Damansara Heights, Perla Ara Sentral in Ara Damansara, Park Regent at Desa ParkCity, Kuala Lumpur, Hap Seng Star-Mercedes-Benz's Autohaus in Setia Alam, Selangor, the Hyatt Centric hotel in Kota Kinabalu, Sabah, as well as piling and substructure works for Aviary Residence in Puchong Horizon.

On its prospects, GDB said given the ongoing Covid-19 pandemic and economic uncertainties on a global scale, it expects the outlook for the current financial year to be challenging.

“Nonetheless, the group has undertaken cautiously the necessary measures to ensure stability of its finances and business operations.

“Barring any unforeseen circumstances, the group is optimistic about its performance for the current financial year,” it said.

“GDB is expected to remain profitable for the financial year ending Dec 31, 2020 (FY20) with the appropriate measures put in place to ensure smooth construction progress for our ongoing projects,” it said.

At the midday break today, GDB was unchanged at 57.5 sen, valuing it at RM359.38 million.

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