Gabungan AQRS earnings rise to RM15.2m in 4Q17

By FARA AISYAH / Graphic by TMR

GABUNGAN AQRS Bhd more than doubled its earnings for the fourth quarter ended Dec 31, 2017 (4Q17), to RM15.24 million compared to RM7.45 million recorded a year ago, helped by the stronger performance from its construction segment.

The property development and construction firm also recorded a 74.52% jump in revenue for the final three months of 2017, rising to RM150.21 million compared to RM86.07 million recorded in 4Q16.

The company told Bursa Malaysia yesterday that the increase in revenue and net profit were mainly due to the higher work progress from the group’s various construction projects.

Its construction division repor ted a revenue of RM154.12 million in the 4Q17 compared to RM73.99 million in 4Q16. The company said the revenues were mainly contributed from the work progress for the Sungai Besi-Ulu Kelang Elevated Expressway, Pusat Pentadbiran Sultan Ahmad Shah and Light Rail Transit Line 3 (LRT3) projects.

Earnings for the full financial year 2017 (FY17) also more than doubled to RM48 million compared to RM22.6 million registered in 2016.

The group recorded a revenue of RM469.44 million, a 42.21% increase compared to the previous corresponding quarter of RM330.1 million.

The company said the key driver to the revenue growth was the construction division.

During the quarter, Gabungan AQRS also recognised a RM47.08 million variation order for its completed Klang Valley Mass Rapid Transit Line 1 project.

However, the company’s property development segment recorded a decrease in revenue due to the lower number of property development projects that the group undertook in 2017.

Consequent to the decrease in revenue, the division reported a loss before tax of RM31.2 million in 4Q17 compared to a loss before tax of RM5.7 million in the previous corresponding quarter.

Gabungan AQRS anticipates a better performance this year as the construction progress for its ongoing construction jobs picks up pace, the company said.

It also expects a turnaround in the property development division as the company plans to increase its marketing efforts for The Peak and also begin launching the One Jesselton Waterfront development in Kota Kinabalu, Sabah.

Gabungan AQRS envisions increasing its construction orderbook by a further RM1.5 billion by the first half of the financial year ending Dec 31, 2018 (FY18), which is expected to positively contribute to the group’s revenue and profit sustainability up to FY21.

As at Dec 31, 2017, the group’s construction orde book stood at RM2.9 billion, representing a RM1.18 billion rise compared to the previous corresponding year, which would sustain the company’s earnings momentum until 2020 or the next 11 quarters.

During FY17, the company secured several new contracts, including the RM1.13 billion LRT3 project and a RM189 million contract to build 1,004 homes in Kota SAS, Kuantan, Pahang.