Wednesday, September 05, 2007

Gadang Holdings

My Dearest JL, Doc and Random,

Here is link to
Gadang's homepage and from their homepage, Gadang is described as follows:

  • The principal activity of Gadang is investment holding while its subsidiary companies' core activities are civil engineering and building construction, property development, manufacturing & trading of decorative & protective paints, mechanical & electrical engineering services.
Here is the recent track record for Gadang.

Here is the link to their latest earnings report (07 Q4)
Quarterly rpt on consolidated results for the financial period ended 31/5/2007

Gadang earnings was rather dismal back in 2002 and 2003. However, as can be seen from the earnings table above, its earnings has improved much for the better. The only slight concern is the slight increase in receivables over the past couple of years despite the fact that the balance sheet has improved much for the better.

This company can be seen striving to achieve to be a better company. This can be seen clearly by the corporate developments the past few months.

The below are some noteable corporate exercises, plans and announcements posted at Bursa Website. Do note some are just mere MOU announcements.

  1. Memorandum of Understanding between Gadang Holdings Berhad and Qingxiu District Government, Nanning, China - Gadang's plan to participate in the investment of a waste water treatment plant in Qingxiu District, Nanning, Guangxi Province, China.
  2. PROPOSED ACQUISITION OF 85% EQUITY INTEREST OF PT. HANARIDA TIRTA BIRAWA ("PROPOSED ACQUISITION") - The Proposed Acquisition will increase Gadang's interests in the treated water supply and concession business in Indonesia. The treated water supply will increase by 600 litres per second in 2008, slightly over twice the capacity of the water treatment plants currently operated by AUPL.
  3. Update on the status of the Joint Venture Agreement entered into between Splendid Pavilion Sdn Bhd and Multiforum Sdn Bhd for the development of land in Segambut, Kuala Lumpur
  4. Letter of Acceptance For Proposed Construction And Completion Part Of Projek Lebuhraya Kemuning - Shah Alam (LKSA), Highway Stretch From Kota Kemuning Interchange To Alam Impian Township in Shah - The contract sum awarded for the Contract is RM278,880,000 (Ringgit Malaysia: Two Hundred Seventy Eight Million and Eight Hundred Eighty Thousand Only). The construction period of the Contract is twenty-four (24) months from 1 September 2007, the date for possession of site and the date of completion for the whole of the works under the Contract is 31 August 2009.

Some recent news clip

  1. Gadang in talks to buy more land
    By Zurinna Raja Adam

    July 12 2007

    PROPERTY developer Gadang Holdings Bhd is in talks to acquire six hectares of land, with an estimated gross development value (GDV) of RM150 million, in Shah Alam and Penang.

    Executive director Ling Hock Hing said the group hopes to finalise talks with landowners within the next three months, and plans to start construction work within two years.

    Gadang has a total landbank of about 48ha in the Klang Valley, with a total GDV of RM120 million, sustainable until 2012.

  2. Gadang may clinch RM300m hospital deal
    By Sharen Kaur

    August 10 2007

    CONSTRUCTION and engineering firm Gadang Holdings Bhd may soon clinch a RM300 million deal for a hospital project in Cheras, Kuala Lumpur.

    Managing director and chief executive officer Datuk Kok Onn said the group's unit, Gadang Engineering Sdn Bhd, is finalising talks with the Government for the proposed construction of the Lady Templer Rehabilitation Hospital.

    "We have tendered for over RM1.5 billion worth of government and private sector jobs where we can expect a success rate of more than 20 per cent. The hospital project is just one of the contracts we are looking at," Kok told Business Times.

    The Lady Templer Rehabilitation Hospital will deal with post-road accident cases, stroke victims, brain injury patients and other physically crippling injuries.

  3. Gadang on a high

    KUALA LUMPUR: Gadang Holdings Bhd sees buoyant earnings for the financial years ending May 31, 2008 (FY08) to FY10 on the back of a burgeoning order book, said managing director and chief executive officer Datuk Kok Onn.

    “We've been working hard. Hopefully, our engineering and construction order book will touch RM1bil by the middle of next year,” he told StarBiz yesterday.

    The second board-listed company is involved in civil engineering and building construction, property development, manufacturing and trading in decorative and protective paints, mechanical and electrical engineering (M&E) services as well as treated water supply and concessions.

    At present, the engineering division has an order book of some RM600mil, which could sustain earnings for the next two years. Gadang also has submitted proposals and tenders worth some RM1.5bil.

Its current property projects can be viewed at iproperty website, Taman Seri Bukit Segambut, Mandy Villa, M.Avenue 3 & 4 storey Retail & Offices and M.Avenue 3 & 4 storey Retail & Offices

Couple of points that needs to be mentioned.

Open the word file attached to Gadang's latest earnings ($FILE/Notes%20GHB(May-2007)Q4.doc ) and have a look at their segmental reporting.

Its construction and property division are making money however its trading of protective and decorative coatings and its water division are NOT doing well.

Secondly, as can seen, whatever info is all from Bursa website and news articles. Hence there isn't any coverage from any research houses. (Is this that bad?)