The table below shows recent contracts secured by Gadang.
|Jun14||RAPID phase 2||RM 350mil||Sep15|
|May14||Cyberjaya Housing Project||RM 1.055bil||2023|
|Oct12||RAPID phase 1||RM 312.8mil||Dec13|
|Jul12||MRT2 Kota Damansara-Dataran Sunway||RM 863.4mil|
|Oct11||Hospital Shah Alam||RM 410.9mil||24 months|
|Jun11||MRT2 phase 1 Sg Buloh depot||RM 23.9mil||8 months|
|Jan10||LCCT/KLIA runway (JV 70:30)||RM 291.2mil||Dec10|
|Feb08||Hospital Rehabilitasi Cheras (JV 55:45)||RM 341.8mil||May10|
|Aug07||LKSA package 1 (JV 50:50)||RM 278.9mil||Aug09|
The Cyberjaya Housing Project is not included in the construction order book I guess, as it is regarded as a property development.
In the next 2-3 years, I estimate that Gadang should get around RM50-60mil net profit per year in average from this project alone.
- 62.84 acres freehold land in Semenyih for RM95.8mil in 2015 (potential GDV >RM450mil)
- 9.5 acres leasehold land in Taman Melawati KL for RM33.1mil in Jul14 (potential GDV RM505mil)
The management does not rule out further expansion of its plantation landbank in the future.
So, Gadang's fully diluted EPS for FY15 will be about 25sen.
At current share price of RM1.18, it is trading at actual PE ratio of just 4.7x.
I think its PATAMI for FY16 will probably exceed RM70mil.
Its balance sheet and cash flow do not look bad either.
Any special reason why Gadang's share price is at RM1.18 now?
Is it because it is involved in property sector?
Anyway, what will Gadang do with the huge cash from Capital City land sale?