Gadang Holdings Bhd

Gadang Holdings Bhd

Postby winston » Sat Jan 04, 2014 6:49 pm

not vested

ONCE a pure construction player, this company is fast transforming itself into a diversified group.

Its property segment, utility and plantation divisions will eventually provide solid support to the group’s total income base where currently construction is still the main driver.


[ Gadang MD and CEO Tan Sri Kok Onn. It has an order book of about RM1.2bil.]Under its construction division, it has an outstanding order book of about RM1.2bil which according to estimates provides earnings visibility of at least three years for the group.

It will tender for up to RM6bil worth of jobs and near-term replenishment could come from the second phase of Petronas’ Rapid project in Pengerang worth some RM300mil, according to a note by JF Apex Securities. The project which involves the construction of a cogeneration plan is expected to be awarded early this year.

Gadang was awarded the job for the first phase of the project.

Under its property segment, some RM425mil worth of launches are earmarked for the current financial year ending May 31.

Gadang has also joined the PR1MA fray by being a partner to government-owned Cyberview Sdn Bhd. The first phase of their affordable homes project in Cyberjaya is expected to be launched in the middle of this year with a gross development value of RM150mil.

Pre-tax profit from Gadang’s property segment increased four-fold to RM4.3mil for the latest quarter from RM1mil a year earlier.

On its utility division, the company is said to be in negotiations to beef up its Indonesia water treatment capacity business where it has controlling stakes in five Indonesian water supply companies.

Its water supply division currently contributes about 10% to the group’s pre-tax profit.

It is also moving into the mini-hydro power generation business where in October it said it would pay RM3.06mil for an 80% stake in PT Hidronusa Rawan Energi, which is currently pursuing a 4MW hydropower project in Indonesia.

This is the company’s second purchase following the acquisition of a 60% stake in a 9MW mini-hydropower project in May for RM3mil.

Contribution from the mini-hydro power generation business, however, is not expected to be immediate as it will take at least two years for the full infrastructure to be put into place.

Gadang also hopes to ride on a potential recovery of crude palm oil prices which headed south last year

JF Apex notes that early harvesting had commenced in early 2012 and the group projected RM20mil of yearly revenue from this business upon maturity, which is about four to five years from now.

For its latest quarter to Aug 31, Gadang’s net profit soared 184% to RM7.1mil on revenue of RM113.5mil compared with a net profit of RM2.5mil on revenue of RM47.3mil previously.

The stock last traded at RM1.02 which is about nine times price earnings ratio to the group’s FY2014 forecast earnings.

JF Apex and UOBKayHian Research have a target price of RM1.43 and RM1.50 respectively on Gadang, suggesting an upside of about 44% on average from the current price.

Catalysts

- Sizeable and growing construction order book which give clear earnings visibility.

- Analysts project earnings growth of 32% compound annual growth rate from FY14-FY16.

- Diversification into property, utility and plantation segments.

- In net cash position, possibly growing dividends for shareholders.

Risks

- Slowdown in domestic consumption could affect demand for property.

- Failure to secure the anticipated contracts.


Source: The Star
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Re: Gadang Holdings Bhd

Postby winston » Fri Jan 27, 2017 8:51 am

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Analysts remain upbeat about Gadang

JF Apex Securities Bhd, which has maintained a “buy” call on the stock, retains a favourable view of the company, due to the diversified business model and ability to achieve satisfactory growth across all divisions.

It has a target price of RM1.20 per share based on a price-to-earnings ratio of 12 times financial year ended May 31, 2017 (FY17) and an earnings per share of 10 sen.


TA Securities Sdn Bhd has also maintained a “buy” call on the stock with a target price of RM1.37 based on an order book replenishment of RM500mil for FY17.

It added that the property arm’s sales would get a boost from the launch of 469 units of affordable apartments and 194 double-storey houses in Cyberjaya.


Source: The Star

http://www.thestar.com.my/business/busi ... ut-gadang/
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Re: Gadang Holdings Bhd

Postby winston » Wed May 08, 2019 9:07 am

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Trading Buy: GADANG - 9261
(Last price: RM0.855, Potential upside +17.0%)


Company Profile
GADANG is involved in
(i) civil engineering and construction
(ii) property development
(iii) utility (mini-hydro plant) and
(iv) mechanical and electrical engineering services.


Trading Catalyst

GADANG had entered into a pre-bid consortium agreement with DWL Resources Bhd to bid for infrastructure works within the next 12 months

With GADANG involved a lot in the civil engineering and construction works, we do not rule out the possibilities of this consortium to bid for future ECRL works.

GADANG’s sizeable orderbook of RM1.3bn as of end-Feb19 could sustain them for another 3-4 years based on FY18 construction revenue.

Technically, GADANG is up trending with a short term consolidation breakout above RM0.83, next resistance is located around RM0.92-0.94, with a LT target at RM1.00. Support at RM0.79-0.805, with a cut loss set below RM0.78.

Technical View
Resistance: RM0.920 / RM0.940 / RM1.00
Support: RM0.805 / RM0.790
Cut loss: RM0.780

Key Financial Stats
Dividend yield: 3.51%.

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Gadang Holdings Bhd

Postby winston » Wed May 08, 2019 9:07 am

not vested

Trading Buy: GADANG - 9261
(Last price: RM0.855, Potential upside +17.0%)


Company Profile
GADANG is involved in
(i) civil engineering and construction
(ii) property development
(iii) utility (mini-hydro plant) and
(iv) mechanical and electrical engineering services.


Trading Catalyst

GADANG had entered into a pre-bid consortium agreement with DWL Resources Bhd to bid for infrastructure works within the next 12 months

With GADANG involved a lot in the civil engineering and construction works, we do not rule out the possibilities of this consortium to bid for future ECRL works.

GADANG’s sizeable orderbook of RM1.3bn as of end-Feb19 could sustain them for another 3-4 years based on FY18 construction revenue.

Technically, GADANG is up trending with a short term consolidation breakout above RM0.83, next resistance is located around RM0.92-0.94, with a LT target at RM1.00. Support at RM0.79-0.805, with a cut loss set below RM0.78.

Technical View
Resistance: RM0.920 / RM0.940 / RM1.00
Support: RM0.805 / RM0.790
Cut loss: RM0.780

Key Financial Stats
Dividend yield: 3.51%.

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Gadang Holdings Bhd

Postby winston » Mon Jul 06, 2020 9:16 am

not vested

Similarly, trading at undemanding 0.43x P/B and 7.7x FY21 P/E, Gadang (RM0.485-Not-rated) has been rebuilding support near RM0.435-0.45 in the last three weeks.

With the recent ECRL jobs win worth RM81m and supported by construction orderbook of ~RM950m and RM107m unbilled sales (which will let the Group busy for the next 2 years) as well as a tenderbook about RM1.6bn, sentiment on this stock is improving.

Technically, the short term downtrend line breakout last Friday is likely to spur share pirces above RM0.50-RM0.55-0.57 territory.

Cut loss is placed at RM0.43.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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