Gamuda (GAMUDA) Q3 2024 earnings summary

Executive summary

• Group revenue surged 73% year-over-year to RM10.0 billion for the nine months ended April 2024, driven by robust overseas construction and property earnings, with overseas revenue now comprising 77% of total revenue.

• Core net profit (excluding discontinued highway operations) rose 14% year-over-year to RM640 million, with overseas net profit up 62% and now accounting for 68% of group net earnings.

• Order book is expected to surpass RM30 billion by year-end, setting a new record.

• Second interim dividend raised to 10 sen/share, bringing full-year dividend to 16 sen/share and yield to 2.5%.

• Quarterly revenue for Q3FY24 rose 82% year-over-year to RM3.8 billion, and net profit increased 6% to RM236 million.

Financial highlights

• Revenue for 9M24 was RM10,010 million (+74% year-over-year); core net profit attributable to equity holders was RM639.6 million (+14%).

• EBIT fell 15% to RM481.8 million; PBT rose 3% to RM748.2 million.

• Basic EPS from continuing operations increased to 23.45 sen from 20.9 sen year-over-year.

• Group EBIT margin declined to 4.8% from 7.5%; PBT margin to 9.8% from 12.5%.

• Cash and cash equivalents at end of period: RM3.22 billion.

Outlook and guidance

• Outstanding order book expected to exceed RM30 billion by year-end, with several new domestic and overseas projects in the pipeline.

• Performance for the year is expected to be driven by overseas construction, especially in Australia, Taiwan, and Singapore, and by new property launches.

• Large construction orderbook of RM24 billion and unbilled property sales of RM6.7 billion underpin future earnings.

• Property division maintains RM5 billion FY24 sales target, with strong Q4 sales anticipated.

• Healthy balance sheet with net gearing at 35%, well below the 70% self-imposed limit.