GDB Holdings’ Q1 surges 54pct, revenue up 11pct [New Straits Times]

KUALA LUMPUR: GDB Holdings Bhd’s net profit jumped 53.7 per cent to RM8.8 million in the first quarter (Q1) ended March 31, 2021 from RM5.7 million a year ago.
The construction services firm said this was due to the advancement of construction works for certain projects compared to the same quarter last year, as well as contribution from completed projects.
GDB’s revenue improved 11.2 per cent to RM111.1 million from RM99.9 million a year ago, on higher revenue contribution from on-going projects and newly-secured 8 Conlay project since November 2020.
GDB had six ongoing projects in Q1, of which three – Park Regent at Desa ParkCity, Hap Seng Star Mercedes-Benz Autohaus at Setia Alam, and Hyatt Centric Hotel in Kota Kinabalu – noted considerable progress this quarter.
This compared favourably to early stages of construction a year ago and also partly due to the Movement Control Order (MCO) 1.0 implemented effective March 18, 2020 during which no construction activities were permitted.
Group managing director Cheah Ham Cheia said the company had achieved commendable Q1 results amid the implementation of MCO 2.0 as the construction sector was allowed to operate, albeit with limited workforce capacity.
GDB remains hopeful that the impact from MCO 3.0 which came into effect from May 6 would not be significant as most economic sectors were still allowed to continue operating, with strict adherence to the requisite Standard Operating Procedures (SOPs).
“The timely completion of AIRA Residence in early March 2021 has freed up some resources to undertake more jobs.
“We will continue tendering for high-rise projects to reach our new contract replenishment target of RM500 million this year,” he said.
As at March 31, GDB’s outstanding orderbook stood at RM1.9 billion, providing earnings visibility until the third quarter of financial year 2023 (FY23).
With zero borrowings and total cash and cash equivalents of RM64.9 million, the company maintained a healthy net cash position as at March 31, 2021 as in previous years.
Cheah said the company was cautiously upbeat of its performance in the current financial year ending December 31, 2021.
“While we have the necessary measures in place to ensure stability of finances and business operations for the smooth construction progress for ongoing projects, we are mindful of the adverse impact on our profitability if the recent price hike on construction materials namely the rebar should continue or further escalate,” he added.