Gamuda earnings soar in third quarter

Kuala Lumpur: Gamuda Bhd’s net profit jumped 56.1% to RM221.48mil in the third quarter ended April 30 (3Q22) from RM141.88mil in the same period a year ago, mainly driven by higher overseas property earnings.

The group said its improved profitability was bolstered by better earnings performance from its property and construction divisions. The construction division grew by 20% while the concession business contracted by 30% year-on-year (y-o-y), it said in a filing with Bursa Malaysia.

Revenue for the quarter rose 21.5% y-o-y to RM1.18bil as works on all fronts picked up pace, leading to higher property and construction earnings.

For the nine-month period, Gamuda’s net profit climbed 46.7% y-o-y to RM550.98mil, as earnings from its overseas operations tripled that of last year.

Gamuda’s nine-month revenue was up 22.2% y-o-y to RM3.21bil, as property sales rose 23%.

Local projects doubled while overseas projects contributed 53% of total property sales.

The property division sold RM2.7bil worth of properties in the first nine months of this year, a 23% jump compared to RM2.2bil in the same period last year.

“Overseas projects remain our biggest contributor, especially in Vietnam and Singapore which contributed 53% of the total property sales.

“Local projects sold RM1.3bil worth of properties in the first nine months of this year, almost doubled the sales of the same period last year.

“This is largely contributed by the five key townships namely Jade Hills, Horizon Hills as well as the core townships Gamuda Cove, Gamuda Gardens and twentyfive,” it said.

The board has declared a second interim dividend of 6 sen per share for 3Q22, as earnings per share rose to 8.72 sen per share in the quarter from 5.65 sen a year ago.

Gamuda Land Sdn Bhd is on track to achieve its full-year sales target of RM4bil, which is 38% more than last year’s RM2.9bil revenue.

Gamuda believes this year’s performance would be driven by property sales and the continued progress of the MRT Putrajaya Line project.

It said its resilience is underpinned by its construction order book, which increased to RM12.4bil following its latest contract win of the Coffs Harbour Bypass Project in Australia worth RM4.1bil as well as unbilled property sales of RM5.4bil.

“The group has a healthy balance sheet with a low gearing of 0.1 times, coupled with a strong cash position,” it added.