PETALING JAYA: GDB Holdings Bhd’s net profit fell 14.4% to RM6.4mil in the third quarter ended Sept 30, against RM7.48mil a year ago on the back of lower revenue.
Additionally, the group faced rising construction material prices, various costs incurred during the full Movement Control Order (FMCO) and Covid-19 standard operating procedure compliance costs.
GDB’s revenue decreased by 7.97% to RM88.27mil from RM95.91mil for the corresponding quarter last year mainly due to mainly a result of the imposition of FMCO enforced nationwide on June 1.
In the first nine months to Sept 30, GDB posted a 17.4% increase in net profit to RM20.1mil from RM17.1mil a year ago. Revenue for the period rose 19.3% to RM280.1mil from RM234.7mil revenue a year ago.
GDB group managing director Cheah Ham Cheia said that the group had progressively obtained Ministry of International Trade and Industry (MITI) approvals to resume construction activities at an initial 60% capacity, with approval for the last ongoing project secured in mid-August 2021.
By end-September 2021, upon meeting the Authority’s requirements, all project sites are permitted to work at full operating capacity.
“We will continue to make progress of our remaining ongoing projects, and are tendering for RM1.31bil worth of projects across commercial, hotel, residential, as well as mixed development segments.
“We are optimistic of our FY2021 performance barring unforeseen circumstances, while mindful of price fluctuation of construction materials and Covid-19 related costs such as workers’ testing, quarantine and site sanitisation measures.
“Furthermore, we are slated to progress into advanced stages of construction towards delivering two major ongoing projects in the next financial year ending Dec 31, 2022, which bodes well for the group’s topline,” Cheah said.
GDB’s RM1.67bil orderbook as at Sept 30 consists mainly of premium high-rise projects of Park Regent at Desa ParkCity, Perla Ara Sentral in Ara Damansara and 8 Conlay in Kuala Lumpur city centre, and Hyatt Centric Hotel in Kota Kinabalu.
“These four ongoing projects are expected to provide earnings visibility until early FY2024,” it said.
As at Sept 30, GDB’s total cash and cash equivalents stood at RM88.1mil.