Gamuda 1Q net profit up 19.6% to RM88.53m

KUALA LUMPUR: Gamuda Bhd's net profit rose 19.6% to RM88.53 million for the first quarter ended Oct 31, 2010 from RM74.02 million a year ago, underpinned by higher contributions from the construction and property divisions.

It said on Friday, Dec 17  revenue rose marginally by 1.6% to RM634.20 million from RM623.96 million a year ago. Earnings per share rose to 4.35 sen from 3.67 sen, while net asset per share was RM1.75.

Gamuda declared a first interim dividend of three sen per share less 25% income tax and three sen per share single-tier (exempt from tax).

On its prospects, Gamuda with the existing construction projects progressing on schedule and the strong performance of the property division, the group expected to perform better in the next few quarters of the current financial year.

"The group is also expected to benefit from the roll-out of projects earmarked in the government's Economic Transformation Programme such as the Klang Valley MRT project," it said.

It also said work on the Yenso Park and sewage treatment plant in Gamuda City, Vietnam remained on track.

Work on the sewage treatment plant was at an advanced stage and was expected to be substantially completed in the current financial year.

On the property division, it said the group's property developments in Malaysia achieved stronger sales on the back of a buoyant economy, improved consumer sentiments as well as an attractive mortgage environment.

"Unbilled sales reached RM760 million as a result of good sales performance. The property division's financial performance is expected to be better in the next few quarters of the current financial year," it said.

Gamuda said strong buying activity was evident, particularly in matured locations and well-regarded developments such as Bandar Botanic, which attracted significant demand for its semi-detached houses and bungalow homes, Horizon Hills and Jade Homes.

It added that its flagship development, Gamuda City in Hanoi, was gearing up for its maiden launch with several thousands of interested purchasers having registered their interest in this development.

The group's second development, Celadon City in Ho Chi Minh City, was also ready for its maiden launch in the first half of 2011. These two developments in Vietnam are expected to be the key drivers of revenue and earnings growth for the overall property division.