Gadang

Monday, 30 December 2013

Gadang upbeat on Danga Bay land

Gadang Holdings Bhd is looking at buying land along the Danga Bay waterfront area after missing the opportunity to do so a couple of years back when land prices in the area were much cheaper. Managing director and chief executive officer Tan Sri Kok Onn believes that property prices in Johor, especially in Iskandar Malaysia, will continue to appreciate on strong demand from foreign investors. “You can miss the boat once, but you should not miss it for the second time," Kok said.

Kok said that Gadang had missed the opportunity to acquire land in the sea-fronting area of Danga Bay years ago when prices were about RM150 per sq ft. He said now the average selling price for land in Danga Bay was RM1,000 per sq ft. (StarBiz)

Source: CIMB Daybreak - 30 December 2013

Friday, 27 December 2013

Gadang forms a JV to develop Johor Bahru project for GDV of RM1.8bn

Gadang has formed a JV to develop its tract in Johor Bahru for an estimated GDV of RM1.8bn. Gadang said its wholly-owned unit Achwell Property Sdn Bhd had entered into a JV agreement with Capital City Property Sdn Bhd for the development and construction of the proposed integrated development, which spans across 12 acres (4.85 ha). According to the announcement, Capital City will pay Achwell a value equivalent to 16.7% of the final GDV of the project, which is up to a maximum sum of RM323m that includes the market value of the land of RM57.5m - a sum exceeding Gadang's market capitalisation of RM208m. (Edge Daily)

Source: CIMB Daybreak - 27 December 2013

Monday, 9 December 2013

Cyberview and Gadang team up for RM1.06bil development

Cyberview Sdn Bhd, the land owner of Cyberjaya, has joined hands with Gadang Holdings Bhd to start a multi residential development project with a gross development value (GDV) of RM1.06bn. The project will be segmented into four phases to be developed over nine years, Cyberview MD Fari Yahaya said. The residential project will comprise 794 units of the 1Malaysia Housing Programme, or PR1MA houses, 142 two-storey link houses, 340 stratified two-storey link houses, 1074 apartment units and 150 government quarters. "The earthworks are expected to begin in the first quarter (1Q) of next year, with sales of the first phase starting in 3Q. (Malaysian Reserve)

Source: CIMB Daybreak - 09 December 2013

Wednesday, 30 October 2013

Gadang Buys 80% HRE Stake

Gadang Holdings Bhd has acquired 80% stake in Indonesia-based power company PT Hidronusa Rawan Energi (HRE) for 10.8bn rupiah (RM3.06m). In a filing with Bursa Malaysia, Gadang said its indirect wholly-owned subsidiary, Asian Utilities Pte Ltd, had entered into a sale and purchase of shares agreement with Angga Panji Kesuma and Aprian Eka Rahadi to acquire 6,000 shares of nominal value 1m rupiah each, representing 80% stake in HRE. (Starbiz)

Source: CIMB Daybreak - 30 October 2013

Monday, 27 May 2013

Gadang targets RM2bn order book by end of the year

Gadang's order book stood at a respectable RM1.4bn. MD/CEO Tan Sri Kok Onn expects the group to end the year with around RM2bn order book. The group has RM8bn worth of tender book and he is confident that it will be able to secure at least RM1bn this year. He is confident of winning phase 2 earthworks contract for Petronas' RAPID project.

• The group also plans to bid for the RM4.5bn RAPID co-generation power plant in Pengerang, for which it has been prequalified with two Chinese partners, he said. Another potential project is the RM450m, 268-bed hospital in Kuala Krai, Kota Bharu. 
• In five years, he targets that construction and property contributed 40% each to earnings while utilities and plantations making up the remaining 20%. (Edge Weekly)

Source: CIMB Daybreak - 27 May 2013

Monday, 13 May 2013

Gadang sees good returns from power sector venture

Gadang Holdings, a predominantly construction group is well on its way to beefing up its income base with contributions from its other business divisions. For starters, it has finally landed a deal in the power business. Earlier this month, it announced the purchase of a 60% stake in PT Ikhwan Mega Power, an Indonesian hydroelectric utility firm, for RM3m. That marks its foray into the power sector. ¡§We are expecting at least a 15% IRR over a tenure of 30 years. This venture will be a steady source of income for us,¡¨ MD/CEO Tan Sri Kok Onn said.

• PT Ikhwan Mega Power has a PPA with PT Perusahaan Listrik Negara, the Indonesian national power company, to develop and supply power from a 9MW mini hydro power plant to be located in Kabupaten Tanah Datar, west Sumatra. 
• Currently, about 70% of Gadang's turnover comes from its construction division, followed by property. Utility earnings from its power business are expected to kick in soon. For its construction division, the group has tendered for RM4bn worth of local jobs and expect to get 20% of these by 2H13. (StarBiz)

Source: CIMB Daybreak - 13 May 2013

Monday, 6 May 2013

Gadang looks overseas to power up earnings

Tan Sri Kok Onn, the founder of Gadang Holdings Bhd, is banking on jobs from the utilities industry abroad to help diversify the company's earnings base. Kok Onn, who is also the managing director of the company, believes that venturing into the power business will help provide long-term recurring income. 

He told BT this just days after Gadang informed Bursa Malaysia that it is in the midst of making its maiden effort to break into the power business overseas. Last week, Gadang said its indirect wholly-owned unit Asian Utilities Pte Ltd (AUP) plans to buy a 60% stake in PT Ikhwan Mega Power (PTIMP) for RM3m. (BT)

Source: CIMB Daybreak - 06 May 2013

Friday, 3 May 2013

Gadang buys 60% of Ikhwan

Gadang Holdings has bought a 60% stake in PT Ikhwan Mega Power, an Indonesian hydroelectric utility firm, for RM3m. This is the construction company’s maiden foray into the power sector. PT Ikhwan Mega Power has a PPA with PT Perusahaan Listrik Negara, the Indonesian national power company, to develop and supply power for 15 years from a 9MW mini hydro power plant to be located in Kabupaten Tanah Datar, Sumatera Barat. (StarBiz)

Source: CIMB Daybreak - 03 May 2013

Monday, 8 April 2013

Gadang bags RM1.02b Cyberjaya PR1MA job

Gadang Holdings will develop Cyberjaya's first affordable housing project for an estimated RM1bn. The PR1MA (Program Perumahan 1Malaysia) project is Gadang's first job in Cyberjaya. It is learnt that the project is slated to start by year-end and will generate revenue of more than RM100m p.a. for Gadang over a period of eight to nine years, sources said. The project will feature 2,500 apartment and condominium units, double-storey link houses and government quarters, and 50 shops and retail units. Gadang, which is controlled by Tan Sri Kok Onn, will develop the properties on a 43.7ha site. (BT)

Source: CIMB Daybreak - 08 April 2013

Friday, 23 November 2012

Gadang Holdings: Eyes RM500m jobs

Gadang Holdings Bhd is expected to replenish its construction orderbook by RM500m in six month’s time from its current tendering of projects worth RM3bn. According to the MD and CEO, Tan Sri Kok Onn, Gadang has and orderbook of RM1.6bn at present. We are also interested to further participate in the Klang Valley Mass Rapid Transit (KVMRT) project for Line 2,” he said. (StarBiz)  

Source: ECM Newz Bits - 23 November 2012

Tuesday, 30 October 2012

Gadang Holdings Bhd (Company Update): Meeting with management reaffirms Trading Buy

(Maintain TRADING BUY, TP: RM1.00)

Our meeting with Gadang’s management yesterday reaffirms our Trading Buy and target price of RM1.00. Despite yesterday’s weak 1QFY13 results, earnings should pick up strongly from 2QFY13 onwards, and our initial estimate of at least 10 sen EPS in FY13 from construction division alone is on track. (refer to report for details)

Source: ECM Newz Bits 30 October 2012, Full PDF Report

Friday, 19 October 2012

Gadang: Bullish on sector

Gadang Holdings Bhd sees bright outlook for the construction industry in the next two three years, supported by various upcoming infrastructure and commercial projects as well as the Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor. The group is currently bidding for jobs worth several billion ringgit in some of these development. Gadang unit, Gadang Engineering (M) Sdn Bhd MD Khew Check Kiet said the company was bidding, together with its foreign joint-venture partners, for power-supply infrastructure jobs in the Rapid project. “We are also bidding for some works in the Tun Razak Exchange and KLCC basement car parks,” he said after briefing on the company’s current biggest project, the viaduct guideway package 2 (V2). (StarBiz)

Comment: This further reinforces our Trading Buy on Gadang in our Stock Idea published yesterday morning. To recap, our target price of RM1.00 for Gadang is only based on its existing contract wins. Securing more major ETP projects would add to the positive news flow driving its share price. (Hon Sze) 

Source: ECM Newz Bits 19 October 2012

Thursday, 18 October 2012

Gadang Holdings Bhd (Stock Idea): Winner of key ETP projects (Trading BUY, TP: RM1.00)

(Trading BUY, TP: RM1.00) 

In the interest of timeliness, we are publishing this Stock Idea on Gadang before meeting with management. Our analysis is thus based on publicly available information and any assumptions on our part have yet to be verified. Gadang is a small construction company that has been winning key ETP projects that has yet to be reflected in its share price. We recommend a Trading Buy with target price of RM1.00 and potential capital upside of 52%. (refer to report for details)

Source: ECM Newz Bits 18 October 2012, Full PDF Report

Wednesday, 10 October 2012

Gadang: Gets RM313m job at Rapid

Gadang Holdings Bhd has secured the refinery and petrochemical integrated development (Rapid) project site preparation contract worth RM312.8m. The company said it received the letter of award from Petronas on 5 October. It expects the contract to contribute positively to its earnings for the FYE 31 May 2013 and 2014. (Financial Daily) 

Source: ECM Newz Bits 10 October 2012

Monday, 8 October 2012

Gadang: Accepts Petronas LOA Engineering and construction firm

Gadang Holdings Bhd has accepted a letter of award (LOA) from Petroliam Nasional Bhd (Petronas) to conduct site preparation works for Phase 1 of Petronas' proposed Refinery and Petrochemical Integrated Development project located in Pengerang, Johor. According to the Bursa Malaysia filing by Gadang, the project is expected to be completed by 31 Dec 2013. Although there was no value attached to the contract, sources said it was valued at some RM330m. (StarBiz) 

Source: ECM Newz Bits 08 October 2012

Monday, 10 September 2012

Gadang: Hands over Runway 3 at KLIA2, upbeat on winning more contracts

Malaysia Airports Holdings Bhd (MAHB) has taken possession of Runway 3, worth RM291.2m which was awarded to Gadang Holdings Bhd in 2010. The job includes building taxiways, site preparation, earthworks and main drainage. Gadang completed the job last month and handed it over to MAHB on 28 August. With the completion of Runway 3, Gadang MD and CEO Tan Sri Kok Onn said the company is now eyeing earthwork packages for projects under the Economic Transformation Programme (ETP). (Business Times) 

Source: ECM Newz Bits 10 September 2012

Monday, 3 September 2012

Gadang: Targets jobs worth RM2bn

Gadang Holdings Bhd is bidding for construction jobs worth more than RM2bn, mostly government projects, to grow its future earnings. Its MD and CEO Tan Sri Dato’ Kok Onn said although the construction sector is facing a high cost of building materials and labour shortage, Gadang is eyeing more jobs to replenish its current order book and move up a notch. Gadang has RM1.5bn worth of jobs in hand to keep it busy for the next three to four years, said Kok. (Business Times) 

Source: ECM Newz Bits 03 September 2012