KUALA LUMPUR (April 26): Gadang Holdings Bhd has secured a RM280 million contract to design and develop the Klang Valley Data Centre Block 2 in Cyberjaya from TM Technology Services Sdn Bhd, a business entity of Telekom Malaysia Bhd.
In a bourse filing on Friday, the builder-cum-property developer said the contract was awarded to its wholly owned unit, Gadang Engineering (M) Sdn Bhd, for two years from April 24, 2024 to April 23, 2026.
The contract is expected to positively contribute to Gadang's earnings and its subsidiaries from the financial year ending May 31, 2025 (FY2025) onwards and throughout the contract period, it noted.
Gadang on Monday announced its net profit for the third quarter ended Feb 29, 2024 (3QFY2024) of RM6.47 million — the highest since 2QFY2022 — against a net loss of RM4.96 million a year ago, driven by interest accumulation on trade receivables and favourable foreign exchange translation.
Quarterly revenue also climbed by 14% to RM141.15 million for 3QFY2024, compared with RM123.98 million a year earlier, driven by increased contributions from the property division.
For the nine-month period ended Feb 29, 2024 (9MFY2024), Gadang posted a net profit of RM14.1 million versus a net loss of RM1.62 million for 9MFY2023, on the back of better sales achieved and higher work progress from development projects. Revenue increased by 13% to RM433.1 million, from RM382.12 million for the same period.
Shares in Gadang finished unchanged at 38.5 sen on Friday, with a market capitalisation of RM280.3 million. The counter has increased 13.24% year-to-date, and gained 32.76% in the past one year.