Gabungan AQRS makes RM17mil profit in Q3

Gabungan AQRS said its wholly-owned unit Gabungan Strategik Sdn Bhd received the contract from Syarikat Muhibah Perniagaan Dan Pembinaan Sdn Bhd (SMPP).

KUALA LUMPUR: Gabungan AQRS Bhd expects earnings to improve further next year, boosted by positive income from property development and construction division.

The company, on Thursday, posted a net profit of RM17mil on revenue of RM159.3mil in the third quarter ended Sept 30. 

The bulk of its revenue was derived from on-going work at the Sungai Besi – Ulu Kelang (SUKE) Highway and Pusat Pentadbiran Sultan Ahmad Shah (PPSAS) projects.

However, slower progress works of Light Rail Transit Line 3 (LRT3) project due to the review by the Government had an impact on its revenue and profit.

“Nevertheless, it is anticipated that the project review will be completed very soon and work progress for LRT3 project will be back on track by mid of 4Q18,” it said in a filing with Bursa Malaysia today.

It said the LRT3 project is expected to start contributing positively to the revenue and earnings in the coming quarters.

“The gGroup anticipates a better financial performance in FYE 2018 compared to FYE 2017, propelled by the construction division, and thereafter from FYE 2019 to FYE 2021, we expect further improvement to our revenue, earnings and cash flows as the property development division begin to contribute positively alongside the existing construction division,” it said.

The group said it is committed to ensure that the fundamentals of the business operations continue to be efficiently-managed, including the monitoring of its cash flows, operating expenses and finance costs.

“Aside that, all of our ongoing projects are being monitored closely to ensure efficient cost control and timeliness to safeguard our margins,” it said.