KUALA LUMPUR (June 21): GDB Holdings Bhd (KL:GDB) has secured a contract worth RM865.66 million — nearly three times its market capitalisation of RM304.54 million — from an associate company of Permodalan Nasional Bhd (PNB) to build a logistics hub in Seksyen 15, Shah Alam.
The announcement confirms The Edge Malaysia weekly's report for the week of April 15-21, 2024, citing sources, that GDB was close to securing a substantial contract to build a warehouse in Shah Alam, Selangor.
In a filing with Bursa Malaysia on Friday, the construction firm announced that its wholly owned subsidiary, Grand Dynamic Builders Sdn Bhd (GDBSB), had accepted the letter of award for the construction of Plot B of the logistics hub from Strategic Sonata Sdn Bhd.
Plot A of the logistics hub has been awarded to construction giant IJM Corp Bhd (KL: IJM) by Strategic Sonata, according to a separate filing.
A check with the Companies Commission of Malaysia showed that PNB owns 30% in Strategic Sonata, while the balance 70% is owned by Singapore's Mapletree Dextra Pte Ltd.
As the main contractor, GDB has to design, build and maintain the five-storey ramp-up warehouse, complete with offices, amenities, and supporting facilities.
The job is scheduled to start in June 2024 and be completed in 30 months, which is by December 2026.
This is GDB's second contract win of the year. In late January, the company secured a RM306 million contract to design and build a private hospital in Bukit Jalil, Kuala Lumpur, appointed by KL International Hospital Sdn Bhd, a subsidiary of KL Wellness City Sdn Bhd.
GDB's group managing director Cheah Ham Cheia said the latest contract win boosts the group's outstanding order book to RM1.2 billion, ensuring sustained work until 2026. "This project strengthens our portfolio, complementing our ongoing high-rise residential, commercial, and mixed-use developments, along with our hospital and industrial property projects."
Cheah, who holds a 48.94% stake in GDB through his investment vehicle CHC Holdings Sdn Bhd, is the company's largest shareholder. The second-largest shareholder is group executive director Alexander Lo Tzone Leong, with a direct stake of 21.07%.
In the first quarter ended March 31, 2024 (1QFY2024), GDB reported a net profit of RM2 million, more than three times the RM667,000 recorded in the previous year's first quarter, driven by increased interest and lease income. Revenue dropped 37% to RM44.5 million from RM71.3 million, primarily due to the completion of the 8 Conlay project and absence of revenue from the Park Regent project that was finalised in the previous quarter.
GDB's shares gained 1.5 sen or 4.76% to close at 33 sen on Friday. The stock has jumped over 70% since the beginning of the year.