GDB posts 6.2% higher net profit to RM7.2 million in 3Q19 [Press Release]

  • Order book stood at RM1.26 billion to be recognized until 2022.

Selangor, Malaysia, 20 November 2019 – Construction services group GDB Holdings Berhad (GDB      , Bloomberg: GDB:MK, Reuters: GDBH.KL) recorded 6.2% net profit increase to RM7.2 million on 40.3% higher revenue of RM78.2 million in the third quarter ended 30 September 2019 (3Q19). In the same quarter last year, revenue and net profit of the Group was RM55.7 million and RM6.8 million respectively.

The 6.2% net profit growth was driven by higher revenue recognition as well as higher interest income. Meanwhile, the 40.3% revenue surge was primarily due to higher progress billings from the construction of AIRA Residence, Menara Hap Seng 3 and Perla Ara Sentral, which began contributing in 2Q19.

GDB has been on a winning streak for the last three months to November 2019, which brought total contract wins year-to-date to a record-breaking RM953.9 million. This represents GDB’s highest contract wins in a financial year since the Group’s inception in 2013.

The new jobs secured includes Park Regent in Desa ParkCity, 5-star Hyatt Centric hotel in Kota Kinabalu, piling and substructure works for Aviary Residence in Puchong Horizon as well as Hap Seng Star Mercedes-Benz Autohaus in Setia Alam, Selangor.

Mr. Cheah Ham Cheia (谢汉正)Group Managing Director of GDB Holdings Berhad said

“Our recent contract wins marks several milestones for the Group, including the Group’s single largest contract, first substructure contract, first job in East Malaysia, as well as GDB’s venture into other building segments.

These achievements are not only a vote of confidence of our expertise by notable project owners, but also showcase GDB’s steadfast commitment in pushing the boundaries in a bid to reach our next growth cycle.

Moving forward, GDB will continue to leverage on our stellar track record and status as one of the Malaysia’s leading builders to bolster our current order book to-date of RM1.26 billion.”

GDB’s current orderbook stands at a healthy level of RM1.26 billion, which comprises the Group’s recent contract wins and order book as at 30 September 2019. The orderbook provides positive earnings visibility until financial year ending 31 December 2022 (FY2022).

The Group’s other ongoing projects are AIRA Residence in Damansara Heights, Menara Hap Seng 3 within the Kuala Lumpur city centre, Perla Ara Sentral in Ara Damansara, Park Regent in Desa ParkCity, piling and substructure works for Aviary Residence in Puchong Horizon, and Hap Seng Star Mercedes-Benz Autohaus in Setia Alam, Selangor.

Meanwhile, the 5-star Hyatt Centric Hotel in Kota Kinabalu project is in the midst of entering into a formal Letter of Award for the contract works upon the finalisation of Bills of Quantities and awarded contract value.

Financial results for the nine-month ended 30 September 2019 (9M19)

Overall, GDB’s revenue for 9M19 increased 4.2% to RM213.9 million from RM205.2 million in the previous corresponding period. The increased revenue is primarily driven by higher contribution from on-going projects, including the commencement of construction works for Perla Ara Sentral in Ara Damansara.

At the same time, the Group’s 9M19 net profit dipped 5.9% to RM21.2 million from RM22.5 million a year ago due to higher profit recognition from completed projects in the previous financial period as well as higher administrative expenses during the 9M19.

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About GDB Holdings Berhad (www.gdbhb.com.my)

Established since 2013, GDB has two subsidiaries namely, 100%-owned Grand Dynamic Builders Sdn Bhd (GDBSB) and 70%-owned GDB Geotechnics Sdn Bhd (GDB Geotechnics), formerly known as Eco Geotechnics Sdn Bhd.

GDBSB is an integrated construction group that are specialised in building sizable high- rise construction projects, with emphasis on environment, quality, and safety. GDBSB is equipped with multiple certifications such as ISO 9001:2015 Quality Management System, ISO 14001:2015 Environmental Management System, and OHSAS 18001:2007 Occupational Health and Safety Management System. GDBSB has also obtained the QLASSIC, CONQUAS, BQUAS, SHASSIC, and Green 5-S programme certifications for its various projects.

On top of that, GDBSB is registered with the Construction Industry Development Board (CIDB) of Malaysia as a Grade G7 contractor, which allows GDBSB to tender for projects with unlimited value in the categories of general building, general civil engineering, and mechanical works. GDBSB also obtained the Sijil Perolehan Kerja Kerajaan as a Grade G7 contractor that enables it to participate in tenders for Government projects with contract value of RM10.0 million and above.

Its 70%-owned subsidiary, GDB Geotechnics, extends the Group’s in-house capabilities to include geotechnical and foundation engineering works. This comprises bored, caisson and micro piling solutions, diaphragm walls, earth retaining systems, soil treatment, earthworks, basement works as well as general construction.

GDB Geotechnics also holds a Grade 7 License from the CIDB of Malaysia.

Issued for and on behalf of GDB HOLDINGS BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd. For media enquiries, please contact:
Ms. Julia Pong                  julia@aquilas.com.my    T: +603- 27111391 / +6012-3909 258
Mr. Hanif Kamarudin         hanif@aquilas.com.my   T: +603-2711 1391 / +6011-2380 6132