@EST85 I was merely refer to Q4 and expected better results than last financial year 5-10%. Recent days volume appears better than previously (a positive sign). Gadang is the one of many stocks that its fundamental runs faster than the share price for a year plus. All it needs is "a play" and the "script" is ready. When will it happen, is half a billion dollar question.
Yes. Gadang's fundamental is pretty and good performance business. However, the Management not so kind to distribute the Dividends or bonus shares to Shareholders. May be they keep for money for more investment and put the in bank deposit temporary??
Oh no.. You seems dun understand Gadang. They pay final dividend annually, and just distributed bonus shares in the end of 2016. What are you looking for actually?
EST85 Yes. Gadang's fundamental is pretty and good performance business. However, the Management not so kind to distribute the Dividends or bonus shares to Shareholders. May be they keep for money for more investment and put the in bank deposit temporary?? 23/07/2018 16:47
I heard coming quarter is good (i.e. FYE18 is better than FYE17). However, how the price reaction is anyone's guess. Positive sentiment in construction sector helps. It depends how market react, last 3 FYEs average is RM85m, next 3 FYEs average estimates is RM120-130m (with existing projects).
One of the few stocks that selling below Net Current Assets of RM800m plus and with earning growth of double digit. Script is ready, waiting for action.
Result released ,revenue up but profit drop 21% due to the high expense because of investment properties and esos. Construction is doing good,property is slightly better, utility is going flat,company is looking positive on financial year of 2019 And declare 3 cents dividend
Total expenses for the current year to date increased by RM23.95 million as compared to the preceding year to date. This was mainly attributed by the following accounting charges: fair value adjustment pursuant to the granting of the Employees’ Share Option Scheme of some RM4.38 million; and one-off impairment costs amounting to some RM10.49 million in relation to investment properties, inventories and other receivables.
Yes, but most importantly profit was only down due to non-recurring, one-off impairment costs amounting to some RM10.49 million in relation to investment properties. Subtract this and the PAT for the current quarter will far exceed that of BOTH the previous and the corresponding quarter of FY17 - implying that income from core operations is still very much experiencing steady growth.
But even as it is, both q-on-q revenue growth and ytd revenue still increased by approx 10% despite the challenging circumstances that the company had to operate in with a slowdown in construction as well as property development sectors over the past few months (profits for property development somehow actually increased by almost 100%!). With that in mind, I think this has been a very commendable performance.
Will continue to hold and ride this construction stock rally that we're going through right now for a few more weeks until valuations normalise once again. This stock is still deeply undervalued IMO, esp with an order book that size + new income streams from its construction and utility divisions in Q1 and Q2 of FYE19 respectively.
Adjusted core recurring net profit (exclude one off expenses) is about RM110m vs RM100m. More importantly, the construction orderbook is 4.0x revenue. Property segment will continue to do well from share of GDV of Capital City, and new launches going forward. More importantly, it can continue to sustain double digit growth from RM110m for next two (2) FYs.
Let's see how the market react for next couple of weeks.
fair value adjustment pursuant to the granting of the Employees’ Share Option Scheme of some RM4.38 million; and one-off impairment costs amounting to some RM10.49 million in relation to investment properties, inventories and other receivables.
These two are non recurring kind of transaction which means the full year PBT should be 147mio for FY 2018 vs 141mio for FY 2017 and this will translate into 4.25% growth YoY.
On top of that, FY 2018 for construction segment only recorded revenue of 376mio.
Gadang still hold existing project namely, RAPID package 301 and 402 and new projects namely, KVMRT V206 project, TRX project and Cyberjaya Hospital. Based on the on-going infrastructure projects under construction, a stable earnings stream is expected for the financial year ending 31 May 2019. In addition, the division’s outstanding order book of some RM1.51 billion, shall provide good income viability for the Construction Division
So the sustainable earning for Gadang in near future should be very positive. On top of that, potential tender on ECRL, HSR and Pan Borneo might boost the book order beyond 2billion.
Baru also said the highway project in Sarawak also involved the upgrading of existing roads to four lanes over 706km that covered the implementation under the first phase in 35 packages.
He said the 12 packages under construction would continue to be implemented while the remaining 23 packages were still in various stages of implementation.
Very good Q4 result. Strong revenue growth and profit (excl impairment of almost 10M). Recent price drop is unwarranted and present a big discount on GADANG. INITIATE STRONG BUY at 1.00
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Takashi
296 posts
Posted by Takashi > 2018-07-17 13:47 | Report Abuse
mean go holland