Gadang earnings to improve after Q3

KUALA LUMPUR: Gadang Holdings Bhd expects to see a significant improvement in earnings after the third quarter ending Feb 28, 2008, said managing director and chief executive officer Datuk Kok Onn. 

“The new construction jobs are just taking off,” he said after the company AGM yesterday. 

While escalating material prices remained a concern, the company had been “lucky” as it was able to price the rising cost into the new contracts, he said. 

Kok said Gadang was also in the midst of negotiating for a reservoir project in China.  

“We should know the outcome next month. It will be our maiden project in China,” he said, adding that the company was also eyeing opportunities in Vietnam.  

Besides construction, it is also involved in property development, manufacturing and trading in decorative and protective paints, mechanical and electrical engineering (M&E) services as well as treated water supply and concessions. 

The paints division was awarded a licence by Petroliam Nasional Bhd last year to service the oil and gas sector. It has secured a RM3mil project to provide a protective coat for fabricators.  

“We’re at the forefront with this technology and there are not many players in this segment,” Kok said.  

Gadang, which is seeking a transfer to the main board, submitted its application to the regulators last month, he said.