smart beginners, this is the reason

https://klse.i3investor.com/web/blog/detail/taresearch/2024-01-26-story-h-190177616-Gadang_Holdings_Berhad_Higher_Operating_Costs_Weighed TP0.23 by TA

Review
Stripping off some one-off items of RM0.2mn, GADANG’s 1HFY24 registered lower core earnings of RM7.8mn (-6.9% YoY), which was disappointing as it accounted for only 36.6% of our full-year projection. The negative variance was mainly underpinned by: (i) slower-thanexpected work progress for certain projects, and (ii) higher operating expenses in the construction and utilities divisions.
YoY, 1HFY24 topline increased 13.1% to RM291.9mn, thanks to higher sales recorded and improved work progress in the property division. However, its core PBT plunged by 7.7% YoY to RM12.7mn due to higher operating costs for its 9MW mini-hydro power plant and margin erosion in the construction division caused by higher raw material and labour costs.
QoQ, the 2QFY24’s revenue jumped 25.5% to RM162.4mn, largely driven by: (i) higher construction work progress, (ii) improved property sales, and (iii) the commencement of commercial operation of the 9MW minihydro power plant. Despite this growth, the core PBT was halved down to RM4mn, compared to RM8.7mn in 1QFY24, due to escalating operating costs incurred in both construction and utilities divisions.
Impact
Considering the weaker-than-expected results, we adjusted our revenue recognition and margin assumptions for certain ongoing projects. Consequently, our earnings forecasts for FY24-26F are revised downward by 20.7%/15.9%/12.0%, respectively, reflecting the challenging operating conditions.
Outlook
As of end-Nov 2023, the group’s construction order book and unbilled property sales stood at RM1.1bn and RM280mn, respectively, providing a clear earnings prospect for the group over the next two years. Additionally, the property division anticipates a better sales contribution in the upcoming quarters, supported by compelling sales package incentives.
Valuation
Following the earnings revision, we lower our TP to RM0.23 (from RM0.28) based on the SOP valuation. Maintain Sell call due to the stretched valuation.

buy and keep for such low price... it is damn cheap price now, anytime will break rm1 also.

it will be worth at least 0.5 to rm1 after the merger with that level of order book and it is still growing!

unclefollowers, you can get ekovest construction result from ekovest report.. it is profitable and result will be improving over the year

wait for next month result to push the price above 0.26

and the company will have strong cash flow after the merger due to strong order book and good project delivery record.

this merger will fully release the value of the company

ekovest construction is a. profitable company and will get more projects in the future.. including property developments within ekovest group and other companies, infra projects include Mrt, lrt, hsr and highway projects.

anyhow this counter will be benefiting big projects awarded by government and launched by private sector

the company will turn profitable after the merger.

got vol ady, dont miss the boat ya

fair value is 2.24 as ekovest construction will be swap with this NTA price

this counter will break rm1 anytime soon.

and this counter will benefit the most after merger with ekovest construction company... all construction, infrastructure and railway project will flow into their pocket.

there is no reason for you to sell now if u know there will be share split

https://www.foodiesg.com/archives/67247?fbclid=IwAR23_CjwqECjEM6OgJpfrf1wrLAZ5t-phibbcS3IiLWG25Ovh_EXAD3F7XI

new project gonna launched by the company should be HOT selling

thanks ks 55

welcome the youngman.. engine baru start

inmagine 6 mins from RTS link to SG lo. will you prefer stay near by ? surrounding pricing index reduced by 3.5 times if stay there. earn SGD spend there, convenient also to SG no need traffic jam

surrounding RTS link not much prime land ady. i guess this counter project will be high density and not cheap, but will be good demand also. Singaporean can buy also.

https://www.malaymail.com/news/malaysia/2024/01/11/anthony-loke-putrajaya-confident-rts-link-will-start-on-january-1-2027/111824

dun be surprise if the share price surpass rm4.. it is one of the most undervalue counter.. they will be launching project near RTS johor later this year and completion timing will be just nice matching to RTS provisioning date on 1.1.2027!

sell 200 acres of their total land bank 2400 acress ady worth more than RM1billion. what is the current market value of this counter ? bal 2200 acres prime land and other assets are free

strong buy q

RM3 soon

finally time to fly...... stay tune

retest rm1 again

after share split 1 to 3.6 units, company turns profitable price 50-70 cents is possible.

lol rm1 in year 2024 is too low

profitable construction co will be transfer under this Co soon,

buy and hold 6 mth should be able seeing the result

this stock need hold.. u see wce or not..

u read the biz prospect pls

pls understand the biz.
if not good how to transfer out from ACE Market

so your rm290mil is 50% of the market cap is not correct.. could be rm60million and less not yet deducted the cost captured in their book... gain could be not much

full compensation not going to muhibah as it own 21% of the airport operator company only.......

Good counter got huge potential..

earning improved over the years, expanding biz also , double the bread production soon..

Power up!

huge undervalue stock

collect more bro if u see the value

how about EV charging stations? will benefit to this company also?

but solar is electricity also right need to transmit also?

will this counter benefit from clean energy? i.e. solar energy?

what is the value for 2400 acres land leftover and some other assets?

rm5++m for sales of land, remaining 100acres also wan to selling at rm500m.. sell 200 acres can get back more than RM1b ady, what is the current market cap?

tot construction company is making profit?

if Gtronic is such good prospect why founder wan to sell ?

up non-stop... sold at low price jor 0.25