PETALING JAYA: Gadang Holdings Bhd
’s near-term priority should be to reinforce cost optimisation efforts and enhance profit margins, analysts say.
To support a more sustainable earnings trajectory, a disciplined cost management strategy must be implemented in tandem with active participation in selective tender opportunities, TA Research said in a report.
The research house also remained cautious on Gadang’s job replenishment outlook.
As of end-May 2025, Gadang’s construction order book stood at RM839mil, representing 1.8 times construction revenue for the group’s financial year 2025, ended May 31 (FY25) .
Unbilled property sales amounted to RM297mil.
Considering the heightened competition in the construction industry, TA Research has adopted a conservative assumption of RM300mil in new job wins a year for the group.
This is reflective of the group’s historical track record, prevailing tender success rate, and current sector dynamics.
TA Research maintained its sum-of-parts derived target price of 22 sen a share and reiterated its “sell” recommendation.
This is premised on an unfavourable risk-reward profile.
The shares closed at 27 sen in yesterday’s trading.
TA Research also made no changes to its FY26-FY27 earnings estimates. It introduced its FY28 projections, anticipating earnings growth of 25.9%.
The research house expects Gadang’s property segment to remain a core earnings driver with new launches bolstered by aggressive pricing strategies and attractive sales incentives tailored to meet sustained housing demand.
