Gadang sets property sales target of RM272m for FY20


GADANG Holdings Bhd has targeted to achieve RM272.6 million sales revenue from its property development division in this financial year, up 68% year-on-year (YoY), driven by its new launches according to its MD (property division) Datuk Ling Hock Hing.

Gadang intends to launch three property development projects in Cyberjaya and Semenyih, Selangor, and Salak South, Kuala Lumpur (KL) in financial year 2020 (FY20), ending May 31, 2020.

“As of August this year, the group’s total unbilled sales amounted to RM126.5 million,” he said after the company’s AGM in KL yesterday.

The company now has a land bank of 281.7 acres (114ha) with a gross development value of RM2.52 billion.

Among its future developments include a property development on a 21.1 acre site owned by Kwasa Land Sdn Bhd and 9.5 acres in Taman Melawati, KL.

Gadang’s nine megawatt mini hydropower concession project in Indonesia is 73% completed as of August 2019.

Gadang MD for construction division Khew Check Kiet (picture) foresees the coming year as challenging for the construction industry as there is minimal allocation from the government in the recently announced Budget 2020.

“In Peninsular Malaysia, there is not much spent for infrastructure works. That is why we think it is going to be a challenging year with so many industry players chasing after the limited projects rolled out,” he said.

The group’s orderbook currently stands at RM1.24 billion and Khew said the group is bidding for more jobs — including a hospital project in Pasir Gudang, Johor, a kiosk in Tun Razak Exchange, KL, the 14-kilometre Penang highway and bridge works in Sarawak.

Khew also shared Gadang’s plan to participate in the open tender process for the three Pan Borneo Sabah packages worth RM925 million, which is targeted to be awarded next year.

Gadang’s construction division accounts for 70% or RM480 million of group revenue in FY19.

Last month, Gadang reported a 10% YoY decline in earnings to RM14.85 million for the first quarter ended Aug 31, dragged by lower contribution from its property business.

Revenue for the period rose by 14% YoY to RM147.6 million driven by higher work progress at its ongoing construction projects.

Gadang’s share price closed yesterday at 72 sen, valuing the construction and property developer company at RM524 million.

Gadang operates in four business segments, namely construction, property, utility and investment division. The company has business interests in Malaysia, Indonesia and Singapore.