GDB net profit rises 6.7% to RM7.0 million in 1Q19 [PRESS RELEASE]

  • Order book stood at RM619.1 million to be recognized until 2021; including RM135.0 million new contract for mixed development project in Ara Damansara

Selangor, Malaysia, 29 May 2019 – Construction services firm GDB Holdings Berhad (GDB, GDB控股有限公司, Bloomberg: GDB:MK, Reuters: GDBH.KL) reported a 6.7% net profit increase in the first quarter ended 31 March 2019 (1Q19) to RM7.0 million from RM6.6 million a year ago, despite 20.1% lower revenue of RM64.8 million in 1Q19 from RM81.1 million in the same quarter last year due to certain on-going projects being in the early stage of construction.

The higher net profit was mainly driven by improvement in profit margin derived from projects’ cost savings and higher interest income, as well as lower other expenses.

On the Group’s future, Mr. Cheah Ham Cheia said that he was optimistic of its prospects for the rest of FY2019, given its larger project base with the addition of the newly secured project in March 2019.

GDB had secured a RM135.0 million contract to construct two blocks of 18-storey residential serviced apartments on an 8-storey podium in Ara Damansara. The 30-month contract is scheduled for completion on 15 October 2021.

Mr. Cheah Ham Cheia (谢汉), Managing Director of GDB Holdings Berhad said:

“We will be making good progress for our three on-going projects, namely AIRA Residence, Menara Hap Seng 3 and our newly secured project in Ara Damansara.

GDB will strive to uphold our stellar safety and quality track record, where we have consistently achieved 5-star rating with score above 90% from Construction Industry Development Board (CIDB) in Safety and Health Assessment System in Construction (SHASSIC). This track record positions us well to secure new projects going forward.”

GDB’s order book stood at a healthy level of RM619.1 million as at 31 March 2019, which provides positive earnings visibility until financial year ending 31 December 2021. The Group’s on-going projects are AIRA Residence in Damansara Heights, Menara Hap Seng 3 within the Kuala Lumpur city centre and mixed development project in Ara Damasara, Petaling Jaya.