Corporate results: GDB Holdings, Tasek Corp, Pentamaster and Ranhill

GDB lands first East Malaysia contract worth RM213m
GDB Holdings Bhd has secured its first contract in East Malaysia to build the Hyatt Centric hotel in Kota Kinabalu, Sabah, for a provisional contract value of RM213.3 million. In a statement yesterday, the GDB stated its unit, Grand Dynamic Builders Sdn Bhd, executed the Letter of Intent (LOI) from Hap Seng Consolidated Bhd’s unit, Sunhill Ventures Sdn Bhd, to undertake construction works for the 5-star Hyatt Centric hotel. The award is GDB’s second contract won from Hap Seng, having secured the 26-storey Menara Hap Seng 3 in Kuala Lumpur City Centre in 2017. The duration of the contract is 22.5 months, with commencement date on Jan 2, 2020, and scheduled for completion on Nov 16, 2021. With this contract, GDB has secured new jobs worth RM865.3 million year-to-date. GDB’s outstanding order book as at June 2019, stands at RM1.2 billion to be recognized over the next three years.

Tasek Corp’s net loss eased 10.3%
Tasek Corp Bhd’s net loss in its third quarter ended Sept 30, 2019 narrowed by 10.3% year-on-year (YoY) to RM5.3 million from RM5.9 million, helped by lower interest income. The current loss was mainly contributed by the cement segment which continued to be affected by the prolonged price competition and high production costs, the company said in a Bursa Malaysia filing yesterday. Revenue for the quarter rose 6.9% YoY to RM160.2 million due to the higher revenue from the ready-mixed concrete segment of RM57.6 million. Tasek’s cement segment recorded revenue and loss of RM120.5 million and RM14.0 million respectively for the period and continued to face pricing pressure in the domestic market. Higher production cost arising from higher electricity and repair maintenance cost during the current quarter further impacted the segment’s performance, it said.

Pentamaster 3Q earnings jumps on better operating efficiency
Pentamaster Corp Bhd’s net profit in its third quarter ended Sept 30, 2019 (3Q19) jumped 25% year-on-year (YoY) to RM21.48 million on improvement in operational efficiency. Revenue for the quarter was 15% higher YoY to RM124.63 million due to increase in sales from the automated test equipment operating segment. For the cumulative nine months, net profit was up 58.3% YoY to RM60.59 million while revenue rose 17.5% YoY to RM364.13 million. In an exchange filing yesterday, Pentamaster said its recent acquisition of TP Concept Sdn Bhd, a medical equipment provider, is a clear indication of the group’s proactive plan in broadening its exposure in the growing medical devices segment. Going forward, management anticipates positive business momentum driven by the increasing complexity and wider adoption of smart sensors; the group’s broadening exposure in the optical and optoelectronics segments and helped by its continuous diversification and expansion into new segments, particularly the automotive and medical industries.  

Ranhill 3Q earnings rise on higher revenue
Ranhill Holdings Bhd’s net profit surged 7% year-on-year (YoY) to RM17.63 million in the third quarter (3Q19) ended Sept 30, this year on higher revenue contribution from its environment segment. The company told Bursa Malaysia yesterday its revenue from July to September this year rose to RM409 million from RM401 million registered in 3Q18 on higher consumption volume growth in its environment segment. Moving forward, Ranhill is pursuing the development of new gas power plants in the Asean region as well as diversifying into the renewable energy business such as geothermal, large scale solar and waste-to-energy projects in tandem with the aspirations of the Malaysian government to increase generation capacity from renewable energy sources. The group declared its second interim dividend of two sen per share. Ranhill’s share price closed one sen lower yesterday at RM1.25, giving it a market capitalisation of RM1.33 billion.