Posted by investor88 > 2018-07-25 20:41 | Report Abuse

On top of that, FY 2018 for construction segment only recorded revenue of 376mio.

Gadang still hold existing project namely, RAPID package 301 and 402 and new projects namely, KVMRT V206 project, TRX project and Cyberjaya Hospital. Based on the on-going infrastructure projects under construction, a stable earnings stream is expected for the
financial year ending 31 May 2019. In addition, the division’s outstanding order book of some RM1.51 billion, shall provide good income viability for the Construction Division


So the sustainable earning for Gadang in near future should be very positive. On top of that, potential tender on ECRL, HSR and Pan Borneo might boost the book order beyond 2billion.

Posted by investor88 > 2018-07-25 20:41 | Report Abuse

https://www.theedgemarkets.com/article/phase-2-pan-borneo-highway-sarawak-undergoing-technical-study-%E2%80%93-works-minister

Baru also said the highway project in Sarawak also involved the upgrading of existing roads to four lanes over 706km that covered the implementation under the first phase in 35 packages.

He said the 12 packages under construction would continue to be implemented while the remaining 23 packages were still in various stages of implementation.

Posted by shpg22 > 2018-07-25 20:51 | Report Abuse

Very good Q4 result. Strong revenue growth and profit (excl impairment of almost 10M). Recent price drop is unwarranted and present a big discount on GADANG. INITIATE STRONG BUY at 1.00

Posted by Patrick13 > 2018-07-25 21:03 | Report Abuse

Very positive result. Once utilities division start to contribute profits in early 2019, next year should expect another better financial performance.

Posted by Whey Whey > 2018-07-25 21:09 | Report Abuse

Good please drop, i want to collect cheap tmr! Without all the one off expense, 2019 will be a outstanding financial year^^

Posted by cheoky > 2018-07-25 21:13 | Report Abuse

Profit rich, cash poor.

Posted by TheMiddle > 2018-07-25 21:38 | Report Abuse

Tmr drop a bit and rebound back. However, Result still good. Price drop too much. TP still RM1.

Posted by callmehorny > 2018-07-25 21:49 | Report Abuse

share price controlling by insider

Posted by SmallFish8 > 2018-07-25 22:04 | Report Abuse

This year a lot of one off expenses about 28million without that this year gadang will continue the outstanding performance..seem like management have intention to normalise the earning to restrain the share price to fly ?

Posted by klseinvestor89 > 2018-07-25 23:27 | Report Abuse

No one realized that PBT from construction is slumped compared to preceding year? and the profit margin from construction business is also dropped so many, without any explanation.

Posted by sosfinance > 2018-07-25 23:54 | Report Abuse

@klse, PBT is up, but the margin is down. Previous FYE has high VOs. Share price will be positive when sentiment is good (disregard figures).

Posted by cwkhor > 2018-07-26 00:23 | Report Abuse

construction PBT is dropping YOY:
For current quarter, revenue increased marginally to RM104.56 million as compared to RM100.66 million recorded in the corresponding quarter of the preceding year. Profit before tax for the current quarter decreased to RM16.76 million as compared to RM36.05 million in the corresponding quarter of the preceding year

Posted by klseinvestor89 > 2018-07-26 00:24 | Report Abuse

@sosfinance, i mean the PBT for current quarter is dropped a lot if you see carefully the FR almost 54%. without any explanation.

Posted by Data5000 > 2018-07-26 05:47 | Report Abuse

Hold

Posted by Investor48 > 2018-07-26 06:32 | Report Abuse

Huat Ar..!
Dividend 3sen..
TP 1.38

Hehe...

Posted by jibbie > 2018-07-26 07:33 | Report Abuse

kon onn buying back since RM1.10. gadang is undervalued still

Posted by SmallFish8 > 2018-07-26 08:12 | Report Abuse

Oppurtunity to top up on weakness hehehe

Posted by Patrick13 > 2018-07-26 08:20 | Report Abuse

17Q4 construction projects in progress - Rapid package 301 and 402 and other completed projects
18Q4 construction projects in progress - Rapid package 301 and 402, MRT2 V206, TRX City, Cyberjaya Hospital

It can explain why FY2018 construction revenue is much higher than last year, while PBT is lower due to new projects kick off such as MRT2 V206, TRX City and Cyberjaya Hospital and timing recognition of variation orders for completed projects in prior year.

Posted by selective_contrarian > 2018-07-26 08:29 | Report Abuse

@klseinvestor89 it is normal for PBT from construction to be lower. Go check the previous QR and you will see the same thing and yet, Gadang's price still fly. If you have been following Gadang for years (or even any construction counter for that matter), you will see that this is very normal, even in some of the bigger firms. Much of it has to do with the accrual method of accounting used based on percentage of completion method under MFRS and MASB. Construction/property companies are not like ordinary companies selling goods whereby a lower PBT usually implies higher cost of sales. What's more important is to see whether the project has returned a profit over the lifetime of a project. For example, just take a look at the property sector in this QR - this quarter 100% profit but almost 100% loss in Q2. If you were judging the company's performance by the drop in PBT after Q2, your evaluation would be flawed and you would've sold early. So just be careful about these things!

And what do you mean by no explanation for drop in PBT in this quarter? I think it's very clear from the P/L statement that it was caused by the item listed as "other expenses" which has increased by around 10 million was then very clearly explained as being the one-off impairment cost in the notes. ESOS expense isn't really significant to me because it's recurring even in the last quarter.

Sometimes, valuing construction firms is not so straight forward and if you don't have at least some knowledge in accounting, your judgments will be poor. My advice is when in doubt and if you have nobody to consult, don't try to be too smart but instead, follow the insiders or the general direction of the market/sector and you will rarely go wrong.

Posted by yklip > 2018-07-26 08:44 | Report Abuse

Thanks selective_contrarian for explaining!

Posted by SmallFish8 > 2018-07-26 08:56 | Report Abuse

opportunity to collect cheap hahaha... 2019 will be a turnaround year for gadang... steady income from construction. Jackpot if can get new order... Utility division turnaround..property division.. positive contribution from capital city... :)

Posted by tksw > 2018-07-26 08:57 | Report Abuse

TQ selective_contrarian sifu

Posted by sosfinance > 2018-07-26 09:08 | Report Abuse

Consensus analysts FYE18,19,20 = 97,110,119, To focus on FYE19 + 20 and beyond. More importantly sentiment for this sector overall improve.

Posted by jibbie > 2018-07-26 09:09 | Report Abuse

gadang still cheap. PE 5 with good ROE.

Posted by lizi > 2018-07-26 09:09 | Report Abuse

selective_contrarian, lower PBT because construction material up.

Posted by Smart_invest > 2018-07-26 09:15 | Report Abuse

epf might collecting before another wave.... based on the chart.... it still healthy moving up.... if break 0.765 will drop instead

Posted by PiddleMinger > 2018-07-26 09:28 | Report Abuse

Not impressed with the results. Market priced in a good quarter result earlier. Took profit, will be back next time

Posted by looi88 > 2018-07-26 09:29 | Report Abuse

healthy chart trend, price will be coming back

Posted by WiseVictor > 2018-07-26 09:36 | Report Abuse

If add in the one-off payment of RM10.49 million and ESOS RM4.38 million, surprisingly the profit of this quarter is much more better o.O

Posted by cheoky > 2018-07-26 09:38 | Report Abuse

Profit rich, but cash poor. Stuck in property inventory.

Posted by SmallFish8 > 2018-07-26 09:52 | Report Abuse

shark in action shark in action... press down press down... hahaha...

Posted by PiddleMinger > 2018-07-26 09:53 | Report Abuse

Not exactly cash poor. But I've mentioned about the high inventories before. Their property division is not doing well. Revenue ytd dropped by around RM 50 million,but pbt salvaged by contributions from capital city.

What used to be their strength (construction) fared poorly this quarter. Still a good company though.

Posted by geary > 2018-07-26 10:02 | Report Abuse

Haha...Sold 50%... capital gains around 20%... hehehe...!!!

Posted by WiseVictor > 2018-07-26 10:03 | Report Abuse

I read their cash flow clearly. They are quite rich in cash and their property sector is doing better compared to preceding quarter. Anyway, Gadang is still cheap with low PE and high ROE. New government settled down, construction sector bomb soon, I suggest that just keep and hold. Happy investing =)

Posted by Brandon Lim > 2018-07-26 10:04 | Report Abuse

This is non dividend stock, only depend on price differences, those who expect dividend and price gain can try Gkent

Posted by Polisman > 2018-07-26 10:04 | Report Abuse

Jesus christ u guys are so gullible, always use past and immediate share price movement to value future value.

The proper method should be to look at current + prospect objectively disregarding share price movement and ask yourself how much it will worth in the future:

1) what the company is doing now (secured order book);
2) fundamental (very healthy current working capital + short term debt with long term financing of assets = no need use own money to finance);
3) future prospects (ECRL, HSR, Pan Borneo Highway etc is a GREAT bonus if secured);
4) facts (still profitable when peers are falling here and there and escaped political cronyism by protecting shareholders value by not giving kickbacks);
5) attractive valuation (very cheap and good quality in relative to peers and should deserve a PREMIUM, that means more upside).

But instead all of them including the so called professionals and experts still get tricked by share price movement every single time and some even quickly announce to the whole world whether they bought it or sold it just to justify your feel good feeling, LOL.

If you really do your homework you will know how misunderstood GADANG is compare to all its peers and all the construction stocks in BURSA, both in relative and in absolute terms. It never fails to amaze me how all the so called professionals and expert still make novice mistake when we paid so much money for them to manage just to get things right, I guess emotion still gets them at the end of the day huh.

And btw, GADANG is never meant for quick profit and cash rich because its a steady quality growth stock. I sincerely hope all traders and non-long term investor to sell all your GADANG shares because it will never meet your objectives that way. Pls sell all now, like right now straight away pls.

Posted by Smart_invest > 2018-07-26 10:06 | Report Abuse

i topup @ 0.77...if continue down every 2cts will topup each time.... haha
ytd i go through the holding of epf.... if saw it keep increase since jan 2018....from 5% to 7%
for fundamental, i quite confident on it management and the project on their hand

Posted by TheMiddle > 2018-07-26 10:25 | Report Abuse

Investors will huge collect after this. 0.765 is a sweet price.

Posted by Whey Whey > 2018-07-26 12:46 | Report Abuse

Aiya why drop so little? Please drop more la i want to collect cheap leh!

Posted by Dylan Yong Hua Tai > 2018-07-26 12:56 | Report Abuse

It look like Gadang still long way to go..... currently no new project coming in, dividend still maintain 3 cents.... plan to drop first and come back later.

Posted by TheMiddle > 2018-07-26 13:05 | Report Abuse

Pls look at the quarter reports. Current qr is influenced by one off impairment loss, eps still above 3.5cents. The annual earning still almost compared to previous year. Look at the on going projects, they will busy these 3 years. TP: rm1, still.

Posted by Kyou > 2018-07-26 13:08 | Report Abuse

https://www.klsescreener.com/v2/news/view/409498/%E5%BB%BA%E7%AD%91%E8%B4%A1%E7%8C%AE%E5%87%8F%E5%8D%8A-%E5%98%89%E7%99%BB%E6%9C%AB%E5%AD%A3%E5%87%80%E5%88%A9%E8%B7%8C22

至于公用事业，集团认为，水务特许经营权带来永续收入，而明年启用的小型水力发电站将成为新的永续收入来源.

Posted by jibbie > 2018-07-26 15:38 | Report Abuse

no money to average down liao

Posted by bluebiznet > 2018-07-26 19:17 | Report Abuse

You consider this as BLOG? WOW great blog! Lol
GADANG 9261 QUARTERLY REPORT 31 MAY 2018

Quarterly Report Review: 

收入增加但净利减少是因为进行雇员购股权计划（ESOS）和一次性开销在投资物业，存货和其他应收款。 

仓库的存货价值从九十八万增加至六千九百多万。 

长期借贷从一亿四千多万增加至两亿两千多万。

短期借贷从四千八百多万增加至五千九百多万。

在建设业务里共有15亿的订单在手。 

在房产业务里共有1亿未开单销售。 

水上发电厂预计将会在2019年初未该集团带来新收入。 


Reference Price: 
25.07.2018 
Price: RM 0.80 
Rolling EPS: RM 0.1446 
PE: 5.53 
NTA: RM 1.06 
Price/NTA: 0.75 
PE*Price/NTA: 4.17 
Undervalued: RM 1.39 
Fair Value: RM 1.85 
Overvalued: RM 2.78

Posted by samyew1234 > 2018-07-26 20:33 | Report Abuse

see, already say result is bad

Posted by Whey Whey > 2018-07-26 22:15 | Report Abuse

Ya ya bad company bad result all please sell, i want to collect cheap haha!

Posted by Her Sin > 2018-07-27 09:20 | Report Abuse

If there is a fruitful reward on share price return,credit should all gone to investor themselves for patience. Gadang is the good company,but its management,pui! They won't consider the benefit as being investors

Posted by stockistlearner > 2018-07-27 10:49 | Report Abuse

have they done all the esos?

Posted by shpg22 > 2018-07-27 11:22 | Report Abuse

Brandon Lim This is non dividend stock, only depend on price differences, those who expect dividend and price gain can try Gkent

GADANG gave 3 cents which translate to around 4% DY. Which part confuse u ?

Posted by 4896share > 2018-07-27 11:31 | Report Abuse

If compare previously price of 1.2x with the latest result, maybe we can say bad.. But now the price only 0.765 with the total capital market of 510m..the result is consider good.. Try take a look of others big company.. Their profit is much more lower than Gadang