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Property developer Gadang eyes RM75m pre-tax profit for FY15, says CFO

KUALA LUMPUR: Property developer Gadang Holdings Bhd is targeting to achieve RM75 million in pre-tax profit (PBT) for the financial year ending May 31, 2015 (FY15), said chief financial officer, (CFO) Kok Pei Ling.

“We expect [to turn in a] better performance in FY15,” she told reporters after the group annual general meeting yesterday.

For the first quarter ended Aug 31, 2014 (1QFY15), Gadang posted a PBT of RM12.71 million, equivalent to almost 17% of the target. Kok foresees that the main contribution will still come from its construction business. Its current outstanding construction order book stands at RM1.3 billion, which will keep the group busy until 2016. It includes projects such as the Klang Valley Mass Rapid Transit (KVMRT) system (package V2), preparation works for Petroliam Nasional’s refinery and petrochemical integrated development (Rapid) project, and Shah Alam Hospital.

Managing director Khew Check Kiet said it is bidding for RM5 billion worth of contracts, which are mainly focused on infrastructure implementation. The projects include the Kinrara-Damansara Expressway (Kidex), a petrochemical plant within the Rapid site, KVMRT Line 2 (Sungai Buloh-Serdang-Putrajaya), and Maju Expressway Extension to KLIA (E20).

On its property division, Gadang Land Sdn Bhd, managing director Ling Hock Hing said unbilled sales stood at RM210 million (excluding joint ventures), which will be recognised over the next two to 2½ years.

Gadang has lined up new property launches with a total gross development value (GDV) of RM250 million to RM300 million for next year. Ling said the property division has total pipeline GDV of RM2 billion, comprising developments in Cyberjaya, the Bandar Puncak Sena township in Kedah, the remaining phases of The Vyne, and the Capital City joint development project.

 

This article first appeared in The Edge Financial Daily, on November 20, 2014.

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