GDB 1Q net profit up nearly 54% to RM8.8m

KUALA LUMPUR: Construction services firm, GDB Holdings Bhd (GDB) has registered a 53.7 per cent rise in net profit to RM8.8 million in the first quarter ended March 31,2021 (Q1) compared to RM5.7 million in the same period last year.

Revenue improved 11.2 per cent to RM111.1 million from RM99.9 million previously. The increase in net profit was contributed by construction for certain projects that were in advanced stages of construction, as well as contribution from completed projects.

Group managing director Cheah Ham Cheia said the group managed to achieve commendable results in Q1 amid the implementation of Movement Control Order (MCO) 2.0 from Jan 13,2021 until March 4,2021 as the construction sector was allowed to operate, albeit with limited workforce capacity.

He said the group remained hopeful that the impact from MCO 3.0 which was enforced from May 6,2021 would not be significant as most economic sectors were still allowed to continue operating, with strict adherence to the standard operating procedures.

"We will also stay vigilant in maintaining optimal operating efficiency this year to allow for smooth progress of projects.

"In fact, the timely completion of AIRA Residence in early March 2021 has freed up some resources to undertake more jobs.

"We will continue tendering for high-rise projects to reach our new contract replenishment target of RM500 million this year, ” he said in a statement today.

GDB has six ongoing projects in Q1 2021, of which three are the Park Regent at Desa ParkCity, Hap Seng Star Mercedes-Benz Autohaus at Setia Alam, and Hyatt Centric Hotel in Kota Kinabalu.

This compared favourably to early stages of construction a year ago and also partly due to the MCO 1.0 implemented effective March 18,2020 during which no construction activities were permitted.

As at March 31,2021, the group’s outstanding order book stood at RM1.9 billion, which provides positive earnings visibility until the third quarter of its 2023 financial year.

GDB said with zero borrowings and total cash and cash equivalents of RM64.9 million, the group maintained a healthy net cash position as at March 31,2021, as in previous years.

On prospects, Cheah said the market sentiments in the overall economy and specifically the construction sector are expected to be influenced by the national COVID-19 response, including the ongoing rollout of the vaccine immunisation programme.

"Simultaneously, the implementation of economic stimulus initiatives by the government is anticipated to aid the economic recovery gradually," he added. - Bernama