PAT grows to RM43.22mil at the year of 2014, contributing PE value goes as low as 6.37.
Having cash of RM80.24mil, it could give GADANG the ability to repay 33% of the total net current liabilities RM241mil.
Recognition of construction billings in first half of financial year 2015 was normally lower and work-in-progress shall start to pick up strongly in 2HFY15. Furthermore, the group has yet to book in its net gain of JV development in Capital City property project in Johor. 12 acres, one office suite tower and one hotel suites tower carried GDV of RM1.8bil, estimate to complete in 66 months. Office suites tower has approx 261,239sqm & SOHO has 18,140sqm. Capital City property sdn bhd responsible to develop the project and all cost will borne by CCPSB. Estimate this project could contribute RM43.94mil annually and last for 5 years.
However, the group's net earnings were partly affected by lower PBT, like property due to higher marketing costs despite higher revenue achieved. Utility profit distorted because of disposal of an Indonesian subsidiary and the weakening of the rupiah.
GADANG's current outstanding order book for its construction division stands at RM1.3 billion, which could provide the Groups segment earnings visibility for the next two to three years. GADANG has bagged a RM350 million Refinery And Petrochemicals Integrated Development or Rapid 2 project for this financial year.
There are a lot infrastructure works for GADANG to bid: West Coast Expressway, the Sungai Besi-Hulu Kelang Elevated Expressway and the Damansara-Shah Alam Elevated Expressway as well as mass rapid transit or MRT 2 and light rail transit or LRT 3.
Addition, the on-going projects will start contributing profits to GADANG. For a RM300mil company like GADANG, this accumulate profit his extremely considerable.
