By SULHI KHALID / Pic By TMR File
Gabungan AQRS Bhd’s net profit for the first quarter ended March 31, 2019 (1Q19) declined by 34% year-on-year (YoY) to RM11.3 million due to slower work progress in the quarter.
Revenue dropped to RM86.3 million, 32% decrease YoY due to slower progress on the Light Rail Transit Line 3 (LRT3) project, which was being reviewed by the government.
The company, which is in construction and property development, stated that its construction segment made a lower revenue of RM82.4 million in 1Q19 compared to RM138.2 million in 1Q18.
“The lower segment’s revenue was driven by the impact of LRT3 project while the main revenue contributor for this quarter was from the work progress for the Sungai Besi-Ulu Kelang Highway and Pusat Pentadbiran Sultan Ahmad Shah projects,” the company said.
Its property development recorded a lower revenue of RM13.4 million in 1Q19 compared to RM14.8 million in 1Q18 despite steady work progress on “The Peak” project in Johor Baru.
The segment returned to the black with a net profit of RM4 million from a net loss of RM1.4 million in 1Q18, Gabungan AQRS’ exchange filing last Friday revealed.
The company stated that improvement in finance costs and impairment loss of investment attributed to the increase in the segment’s net profit.
As of March 31, 2019, the group’s outstanding construction orderbook stood at RM2.4 billion, which is expected to drive its earnings up to 2021.
As for its property development division, Gabungan AQRS is aiming for a property sales target of RM500 million, driven by its E’Island Lake Haven project in Puchong and the relaunch of “The Peak” in Johor Baru City Centre.
Both projects are expected to yield a combined gross development value of RM934 million.
“As at March 31, 2019, our unbilled sales stood at RM91.5 million, while our unsold property units valued at RM532.5 million, out of which RM59.4 million worth of properties have been completed” it said.
Gabungan’s stock price closed higher by two sen at RM1.34, valuing the company at RM633 million.