Strong property sales push Gamuda's 2Q profit up 43%

Strong property sales push Gamuda’s 2Q profit up 43%

23 Mar 2022 | The Edge Markets

Kuala Lumpur (March 23): Gamuda Bhd’s net profit for the second quarter ended Jan 31, 2022 (2QFY22) rose 43.72% to RM177.13 million from RM123.24 million a year ago, as gains from property and construction divisions more than offset the weaker concession business.

Gamuda recorded higher joint venture contribution in the quarter, its filing showed. Group earnings per share rose to 7.05 sen, from 4.9 sen per share in 2QFY21.

Revenue in the quarter rose 43.88% to RM1.29 billion, as property division revenue more than doubled to offset the slightly weaker construction division, while the concession revenue also climbed.

For the six-month period ended Jan 31 (1HFY22), Gamuda’s net profit rose 41.08% to RM329.5 million or 13.11 sen per share, from RM233.55 million or 9.29 sen per share, as contribution from the property segment quadrupled, while earnings from its construction business rose 50%.

The group said property sales jumped 27% to RM1.9 billion in 1HFY22 as overseas projects, especially in Vietnam and Singapore contributed almost 60% of total property sales, whilst local sales doubled.

“Gamuda Land is on track to achieve its full-year sales target of RM4 billion, which is 38% more than last year’s RM2.9 billion sales,” it said.

Revenue for 1HFY22 rose 22.66% to RM2.04 billion from RM1.66 billion, mainly from higher property sales, while both the construction and concession business continued to underperform.

Concurrently, property sales and the MRT Putrajaya Line 2 is expected to drive Gamuda’s performance. The group has unbilled sales of RM5.2 billion, it said.

Gamuda’s construction order book has tripled to RM10.4 billion following its successful bids for the A$2.16 billion (RM6.82 billion) Sydney Metro West-Western Tunnelling Package in Australia and the S$467 million (RM1.45 billion) Defu station and tunnel projects in Singapore.

Shares of Gamuda have risen by 18% since the start of the year. The counter rose 3 sen or 0.89% to close at RM3.39, giving it a market capitalisation of RM8.66 billion.