Gagasan Nadi Cergas’ construction tender book expected to exceed RM1.0 billion mark

  • To support the Government’s development of essential buildings
  • Declares maiden single tier interim dividend of 0.5 sen per share in respect of FY2019

Selangor, Malaysia, 26 August 2019 – Construction group and concessionaire Gagasan Nadi Cergas Berhad (Gagasan Nadi Cergas, the Group, 佳搏有限公司, Bloomberg: 0206:MK, Reuters: GAGA.KL) stated today that its current tender book is expected to exceed RM1.0 billion from approximately RM700 million as at January 2019, as the Group has been successfully pre-qualified in more public sector tenders.

The Group’s current tender book consists essential building projects, comprising healthcare facilities, tertiary education institutions and affordable housing projects nationwide.

Haji Wan Azman bin Wan Kamal, Group Managing Director of Gagasan Nadi Cergas Berhad said:

“Gagasan Nadi Cergas currently is shortlisted for various essential public sector building projects following successful pre-qualification exercise. This validates the Group’s competitive edge of delivering sizable projects nationwide and core specialisation in design and build for the past 20 years.

Moving forward, we aim to continue playing our role in supporting the Government’s initiatives in raising the bar of Malaysia’s essential buildings and quality of life.

To that end, we are hopeful that some of these successful pre-qualifications would eventually enhance our order book of RM640 million as at 30 June 2019.”

The Group’s order book includes constructing the Cardiology Centre for Hospital Serdang, Maktab Rendah Sains Mara (MRSM) in Bagan Datuk, Rumah Selangorku in Putra Heights and Bukit Raja, 1Malaysia People’s Housing in Pasir Mas, and public residential development from Putrajaya Homes.

Gagasan Nadi Cergas’ construction segment contributed the lion’s share of total revenue in the first half ended 30 June 2019 (1H19), constituting 88.1% or RM123.3 million of Group’s RM139.9 million revenue. The segment also brought in further RM5.9 million or 44.2% of 1H19 profit after tax.

Meanwhile, the Group’s recurring income segment, consisting of concession & facility management and utility services, raked in RM10.2 million or 7.3% of 1H19 revenue. The segment, nonetheless, contributed the majority of the Group’s bottomline with RM9.9 million or 73.4% of 1H19 profit after tax.

The property development segment contributed the balance RM6.5 million or 4.6% of 1H19 revenue, and RM0.6 million or 4.7% of 1H19 profit after tax.

Overall, the Group reported RM139.9 million revenue and RM13.4 million in profit after tax in 1H19.

Gagasan Nadi Cergas declared a single tier interim dividend of 0.5 sen per ordinary share in respect of FY2019, with estimated payout of RM3.8 million representing 28.8% of 1H19 net profit attributable to shareholders. The dividend is payable on 30 September 2019 with ex-date on 13 September 2019.

The Group has a dividend policy of distributing up to 30% of net profit attributable to shareholders, beginning in the current financial year ended 31 December 2019.

On dividend payout, Wan Azman said:

“This is our maiden dividend since being listed on the ACE Market of Bursa Malaysia Securities Berhad in January 2019. The Group has performed well operationally despite headwinds in the construction industry and continues to reap the rewards from our recurring income sources in concessions and utilities.”

“To that end, we are delighted to reward our shareholders for their support to the Group. We hope to grow from strength to strength and continue to bring sustainable returns to our shareholders moving forward.”

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