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GDB posts 42pct higher profit in H1, obtains nod to restart construction

KUALA LUMPUR: GDB Holdings Bhd (GDB) has obtained approvals to commence works in all construction sites, and hopes to make good on its RM1.8 billion order book.

GDB also announced that its net profit jumped 42 per cent to RM13.7 million in the first half ended June 30 2021 as revenue climbed 38 per cent to RM191.8 million.

The company also declared its first interim dividend of 0.7 sen per share, which would be paid on September 21 this year.

The dividend payout of RM6.6 million amountedto 47.8 per cent of the first-half net profit attributable to shareholders, GDB said in a statement today.

Group managing director  Cheah Ham Cheia said all its ongoing construction projects had obtained approvals from the Ministry of International Trade and Industry to commence works, albeit progressively, with some as recently as this week. 

"We have proactively arranged for Covid-19 vaccinations for all our staff, sub-contractors and their workers.

"We support the construction industry association's stand to advocate responsible practices to enable the safe recommencement of work activities on construction sites and uphold workers' protection," said Cheah. 

In the second quarter, GDB's net profit rose 25 per cent to RM4.9 million from RM3.9 million a year ago. 

Its revenue doubled to RM80.7 million in Q2 from RM38.9 million in the previous quarter, as the company recognised advanced stages of construction execution works for on-going projects.

GDB said it maintained a strong balance sheet with total cash and cash equivalents of RM80.4 million.

As at June 30 this year, the company's order book of RM1.8 billion mainly comprised construction works for luxury high-rise projects of Park Regent at Desa ParkCity, Perla Ara Sentral in Ara Damansara and 8 Conlay in Kuala Lumpur city centre. 

The order book also includes commercial buildings of Hyatt Centric Hotel in Kota Kinabalu and Hap Seng Star Mercedes-Benz Autohaus at Setia Alam. 

The order book will be recognised over 2.5 years up to end-2023.

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