Gamuda noted that its growth would be underpinned by its large construction order book of RM25bil and unbilled property sales of RM7.7bil.
PETALING JAYA: Gamuda Bhd
expects its performance to be driven mainly by overseas and domestic construction activities, including several data centres, and higher contribution from the property division’s quick-turnaround projects.
For the fourth quarter ended July 31, 2024 (4Q24), the engineering and construction group’s net profit rose by 8% year-on-year (y-o-y) to RM272.5mil or earnings per share (EPS) of 9.83 sen.
Revenue surged by almost 40% on-year to RM4.7bil for the period.
For the financial year 2024 (FY24), Gamuda’s net profit declined by 50% y-o-y to RM912.1mil or EPS of 33.3 sen primarily because FY23 results had recognised an exceptional gain from disposal of its highway operations.
Revenue for FY24 surged by 62% y-o-y to a record RM13.3bil.
In a filing with Bursa Malaysia, from August 2023 to July 2024, the group posted a record-breaking annual revenue of RM15bil (including the share of joint venture companies’ revenue) as overseas construction revenue tripled to a record high of RM9bil from RM3.5bil.
“This growth was anchored by the higher work progress on our Australian projects including a full-year’s consolidation of the recently acquired transport projects business of Australia’s Downer Group (acquired in June 2023 and renamed DT Infrastructure),” it said in the filing.
Notably, in 4Q24, DT Infrastructure, in partnership with Alstom Transport Australia Pty Ltd, secured the A$1.6bil Metronet high capacity signalling project.
The 10-year contract, awarded by the Public Transport Authority of Western Australia, involved upgrading and maintaining the train control systems on Perth’s rail networks, which stands as the world’s largest signalling project by route length.Gamuda’s property division posted a revenue growth of 47% in the year spearheaded by overseas projects with major contributions from several quick-turnaround projects.
Currently, Gamuda’s overseas revenue contributes 75% of overall group revenue from 52% previously.
Meanwhile, the group’s construction order book hit another record high for the third consecutive year at RM25bil.
This helped the construction division post record-breaking revenue and earnings of RM11bil and RM501mil respectively in the financial year and accounted for 72% of group revenue and 55% of group earnings in FY24.
Gamuda said the growth was driven by its Australian projects along with significant contributions from its projects in Taiwan and Singapore.
Gamuda’s property sales also surged to a record for the third consecutive year at RM5bil in FY24, spearheaded by several newly launched projects, leading the property division to post a record high revenue and earnings of RM4.2bil and RM411mil respectively and contribute 28% of group revenue and 45% of group earnings in FY24.
The company has also proposed a one-for-one bonus issue involving an issuance of up to 2.98 billion bonus shares.
The bonus shares will be issued as fully paid, at no consideration and without capitalisation of the company’s reserves.
Looking ahead, Gamuda noted that its growth would be underpinned by its large construction order book of RM25bil and unbilled property sales of RM7.7bil.
Its balance sheet is healthy with a net gearing of 39%, below its self-imposed gearing limit of 70%.
