Construction services firm GDB Holdings Bhd recorded a 17.4% increase in net profit to RM20.1 million in the nine months ended 30 September 2021 (“9M21”) from RM17.1 million previously, even as the Full Movement Control Order (“FMCO”) affected the progress in its construction sites during the period.
9M21 revenue increased 19.3% to RM280.1 million from RM234.7 million revenue a year ago, driven by advanced stages of construction activities for ongoing projects of Park Regent, Perla Ara Sentral, Hyatt Centric Hotel and Hap Seng Star Mercedes Autohaus, as well as a new contribution from 8 Conlay.
The third quarter ended 30 September 2021 (“3Q21”) had a longer lockdown period compared to the previous corresponding quarter. Additionally, the Group faced rising construction material prices, various costs incurred during the FMCO and COVID-19 Standard Operating Procedure compliance costs. Even so, the Group remained profitable at RM6.4 million net profit on RM88.3 million revenue in 3Q21.
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 the end of September 2021, upon meeting the Authority’s requirements, all project sites are permitted to work at full operating capacity.
“With MITI approvals in hand, we expedited construction progress in all sites and successfully delivered Hap Seng Star Mercedes Autohaus on 11 October 2021, eight days ahead of the contractual completion time.
Besides that, today we commemorated the topping-out ceremony of the 61-storey Tower A of KSK Land’s 8 Conlay, marking the structural completion of the first of three towers in development.
We will continue to make progress on our remaining ongoing projects and are tendering for RM1.31 billion worth of projects across the commercial, hotel, residential, as well as mixed development segments.
We are optimistic about 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 sanitization measures. Furthermore, we are slated to progress into advanced stages of construction towards delivering two major ongoing projects in the next financial year ending 31 December 2022, which bodes well for the Group’s topline.”
