KUALA LUMPUR (April 22): Gadang Holdings Bhd posted a net profit of RM6.47 million for the third quarter ended Feb 29, 2024 (3QFY2024), compared to a net loss of RM4.96 million a year ago, driven by interest accumulation on trade receivables and favourable foreign exchange (forex) translation.

The net profit was thw highest since the group recorded RM36.54 million in the second quarter ended Nov 30, 2021(2QFY2022).

Earnings per share stood at 0.89 sen versus loss per share of 0.68 sen for 3QFY2023, the builder-cum-property developer said in a bourse filing on Monday.

The group’s revenue also climbed by 14% to RM141.15 million for 3QFY2024, compared with RM123.98 million a year earlier, driven by increased contributions from the property division.

For the nine-month period ended Feb 29, 2024 (9MFY2024), the group posted a net profit of RM14.1 million, compared to a net loss of RM1.62 million for 9MFY2023, attributed to better sales achieved and higher work progress from development projects. Revenue increased by 13% to RM433.1 million, from RM382.12 million for the same period.

Gadang said its existing outstanding order book stood at RM1 billion as of the end of 3QFY2024, which would be able to sustain its operations for the next two years.

Looking ahead, the company emphasised its commitment to actively tendering for new projects to replenish its order book, and ensuring the timely execution of ongoing projects within the construction division.

On the property development front, the company expects strong performance in the current financial year, supported by unbilled sales of approximately RM250 million.

"The utilities division will continue to explore investment opportunities to build its concession asset base with recurring revenue streams. The construction of a 5.9MWac solar photovoltaic energy generating facility located in Tawau, Sabah, is in progress, and is expected to contribute positively to the group's revenue in FY2025," it said.

The group added that it will continue to actively explore and seek out new business opportunities to expand and strengthen its revenue, ensure the timely completion of ongoing projects, exercise prudence in business dealings, and implement various measures to improve operational efficiency to achieve long-term sustainable growth.

Shares in Gadang closed 1.5 sen or 4% higher at 39 sen on Monday, giving the group a market capitalisation of RM280.21 million.