The loss mainly due to one off impairment loss as below: a) RM11 million one-off impairment loss on goodwill in the Singapore and Indonesia subsidiaries. b) RM7 million impairment of outstanding receivables and contract assets for construction projects. Gadang continues to actively pursue the recovery of outstanding sums. c) RM9 million impairment of the 9-megawatt hydro power concession in Lintau, Tanah Datar, Sumatera Barat arising from delays caused by social disturbances in land matters and construction issues. The project was also impacted by the efficiency and productivity of the construction workforce and the travel ban brought on by the pandemic.
If I am right by my playbook, this stock will never see daylight due to its impairment. The yields greatly reduce its bottom line from reflecting any potential rise for now. I can see why TA set their sell call at 0.28. Reasonable from an MOL ^2 calculation.
U forget this is Casino De Bursa. In our Casino De Bursa, fundamentals all forgotten. PE super high, loss making semua takpa. What is important is Syndicate Goreng. That's all
The trouble with firms like Gadang is our Govt. Depah keeps giving all Mega projects to mainland China then our local construction industry can tutup lah.
let gadang hold my ball tight and warm more than 2 years , is good time to see gadang move upwards for better prospects , as long as market sentimental is good , is good or construction sector , is good for gadang as well
I hope Gadang gets its footing. When local contractors are trying to tie up with Chinese contractors firm as Gadang would fall back. It's time for Govt to step in and have a new ruling for local firms. Govt must protect the local participation, otherwise matilah.
Susah la gadang someone is pressing the price long time ago, when other construction up , gadang up little bit but other construction drop gadang drop more
Review Stripping off some one-off items of RM0.2mn, GADANG’s 1HFY24 registered lower core earnings of RM7.8mn (-6.9% YoY), which was disappointing as it accounted for only 36.6% of our full-year projection. The negative variance was mainly underpinned by: (i) slower-thanexpected work progress for certain projects, and (ii) higher operating expenses in the construction and utilities divisions. YoY, 1HFY24 topline increased 13.1% to RM291.9mn, thanks to higher sales recorded and improved work progress in the property division. However, its core PBT plunged by 7.7% YoY to RM12.7mn due to higher operating costs for its 9MW mini-hydro power plant and margin erosion in the construction division caused by higher raw material and labour costs. QoQ, the 2QFY24’s revenue jumped 25.5% to RM162.4mn, largely driven by: (i) higher construction work progress, (ii) improved property sales, and (iii) the commencement of commercial operation of the 9MW minihydro power plant. Despite this growth, the core PBT was halved down to RM4mn, compared to RM8.7mn in 1QFY24, due to escalating operating costs incurred in both construction and utilities divisions. Impact Considering the weaker-than-expected results, we adjusted our revenue recognition and margin assumptions for certain ongoing projects. Consequently, our earnings forecasts for FY24-26F are revised downward by 20.7%/15.9%/12.0%, respectively, reflecting the challenging operating conditions. Outlook As of end-Nov 2023, the group’s construction order book and unbilled property sales stood at RM1.1bn and RM280mn, respectively, providing a clear earnings prospect for the group over the next two years. Additionally, the property division anticipates a better sales contribution in the upcoming quarters, supported by compelling sales package incentives. Valuation Following the earnings revision, we lower our TP to RM0.23 (from RM0.28) based on the SOP valuation. Maintain Sell call due to the stretched valuation.
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....
anisbin
650 posts
Posted by anisbin > 2023-07-28 18:11 | Report Abuse
QR quite disappointing...