- 47.6% higher 4Q19 net profit of RM8.0 million on 57.0% revenue jump to RM108.8 million; driven by maiden contributions from newly-secured works
- FY19 revenue and net profit surged 17.6% to RM322.8 million and 4.5% to RM29.1 million respectively
- 2nd interim single tier dividend of 1.0 sen per share in respect of FY2019 brings total dividend payout to 43.0% of net profit
- Completed Menara Hap Seng 3 project seven days ahead of schedule despite short contract tenure
Selangor, Malaysia, 28 February 2020 – Construction services firm GDB Holdings Berhad (GDB, GDB控股有限公司, Bloomberg: GDB:MK, Reuters: GDBH.KL) posted significant topline and bottomline growth in the fourth quarter ended 31 December 2019 (4Q19) with 47.6% increase in net profit to RM8.0 million from RM5.4 million a year ago, on 57.0% revenue gain of RM108.8 million from RM69.3 million last year.
The commendable performance was driven by maiden contributions of newly-secured works, namely Park Regent in Desa ParkCity, Hap Seng Star Mercedes-Benz Autohaus in Setia Alam and piling and substructure works for Aviary Residence in Puchong Horizon. This was on top of progress billings for on-going projects as at 31 December 2019, which are AIRA Residence in Damansara Heights, Perla Ara Sentral in Ara Damansara as well as Menara Hap Seng 3 in Kuala Lumpur City Centre, which was completed on 24 December 2019.
GDB’s outstanding order book stood at a healthy level of RM1.15 billion as at 31 December 2019, comprising works for the projects above as well as Hyatt Centric Hotel in Kota Kinabalu, Sabah, which commenced on 2 January 2020.
|“We recently reiterated our ethos of delivering projects ahead of their contractual completion dates by completing the Menara Hap Seng 3 office tower project, seven days ahead of schedule despite the project having a short contract tenure. This trait has proven to be the key factor in reputable project owners entrusting us to deliver iconic developments and grow GDB’s reputation as the contractor of choice. As such, we aim to mitigate the projected challenging environment in 2020 by building on our mammoth current orderbook of RM1.15 billion by targeting to secure an additional RM750 million worth of new jobs, maintaining our operational excellence and executing our growth plans. This is in line with our aspirations to reach revenue of RM500 million by 2020 and RM1.0 billion by 2025.” Mr. Cheah Ham Cheia (谢汉正)|
Group Managing Director, GDB Holdings Berhad
For the financial year ended 31 December 2019 (FY2019), GDB reported net profit growth of 4.5% to RM29.1 million from RM27.9 million a year ago, whilst revenue expanded 17.6% to RM322.8 million from RM274.6 million previously. The improved full year financial performance was largely attributable to the Group’s enlarged revenue base.
The Board of Directors declared a second interim single tier dividend of 1.0 sen per share in respect of FY2019, with ex-date on 16 March 2020 and payable on 27 March 2020. Together with the earlier-paid first interim single tier dividend of 1.0 sen per share, total interim dividends in respect of FY2019 amounted to 2.0 sen per share with total payout of RM12.5 million or 43.0% of FY2019 net profit.
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.
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