Q1 2025 Performance: A Remarkable Turnaround

GDB Holdings has kicked off the financial year with impressive results, showcasing a substantial increase in both revenue and profit. This surge is largely attributed to the progress of key ongoing projects.

Revenue Growth: Soaring Higher

The company’s revenue for the first quarter of 2025 saw an extraordinary leap, more than tripling compared to the same period last year. This significant increase is primarily driven by the robust progress of major projects.

This represents a staggering 228.30% increase, or an additional RM101.54 million in revenue. The report specifically credits this growth to ongoing projects such as the KL International Hospital project in Bukit Jalil, the Logistic Hub project in Shah Alam, and the Metrohub 4 Logistic Hub project in Klang.

Profit Before Tax (PBT): Exponential Rise

The growth story extends to the company’s profitability. Profit Before Tax (PBT) also saw an exceptional increase, underscoring improved operational efficiency and project contributions.

This marks an 841.79% surge, or RM23.65 million, in PBT. This growth is directly linked to the higher revenue from ongoing projects and contributions from recently completed projects. However, it’s worth noting that this positive impact was partially offset by lower other income and higher administrative expenses during the quarter.

Comparison with Immediate Preceding Quarter

Looking at the sequential performance, GDB Holdings also demonstrated strong quarter-on-quarter growth, indicating continued positive momentum.

The revenue increased by 54.95% and PBT by 73.21% compared to the immediate preceding financial quarter, again primarily driven by ongoing projects. The PBT improvement was further boosted by higher other income and lower other expenses, due to an impairment recognised in the previous quarter, though partially offset by higher administrative expenses.

Earnings Per Share (EPS)

The strong performance translated directly into a significant improvement in earnings per share for the owners of the company.

This is a testament to the company’s ability to convert increased revenue into higher profitability for its shareholders.

Financial Health and Outlook

Balance Sheet Snapshot

As of 31 March 2025, GDB Holdings maintains a healthy financial position. Total assets stood at RM385.32 million, up from RM372.71 million at the end of 2024. The net asset per share attributable to owners of the company increased to RM0.22 from RM0.21.

Cash and bank balances, along with fixed deposits, totaled RM29.24 million (RM17.47 million cash + RM11.77 million fixed deposits), compared to RM33.21 million (RM24.04 million cash + RM9.17 million fixed deposits) at 31 December 2024. While cash and cash equivalents decreased due to operating and financing activities (including dividend payments), the company’s overall financial health remains robust.

Order Book and Future Prospects

GDB Holdings’ order book as at 31 March 2025 amounted to a substantial RM1.17 billion. This provides excellent earnings visibility for the group until the financial year ending 31 December 2026. The company is actively pursuing new contract opportunities, having submitted tenders worth RM1.6 billion and planning additional bids of approximately RM1.1 billion by the first half of 2025. These tenders span a diversified portfolio, including commercial, residential, mixed development, and warehouse projects, aligning with improving market conditions in the building construction sector.

Barring any unforeseen circumstances, the Group maintains a cautiously optimistic outlook for its performance for the financial year ending 31 December 2025.

The 8 Conlay Project: An Ongoing Saga

No discussion of GDB Holdings is complete without addressing the material litigations related to the 8 Conlay Project. These disputes with Damai City Sdn Bhd (DCSB) and KSK Land Sdn Bhd (KSKL) remain a key focus for the company, and the legal proceedings are extensive.

Here’s a brief overview of the key developments:

• CIPAA I Adjudication Decision: GDB Holdings successfully enforced the Adjudication Decision of RM97.79 million plus interest and costs. The High Court dismissed DCSB’s applications to set aside and stay the decision, allowing GDB Holdings’ enforcement.
• CIPAA II Adjudication Decision: Similarly, GDB Holdings obtained another favorable Adjudication Decision of RM59.15 million plus costs and interest. The High Court again dismissed DCSB’s applications to stay and set aside, enforcing this decision as well.
• CIPAA III Adjudication Decision: Most recently, GDB Holdings secured a third favorable Adjudication Decision of RM82.67 million plus interest and costs. DCSB has initiated proceedings to stay and set aside this decision, while GDB Holdings has filed for enforcement.
• Writ of Summons against DCSB: GDB Holdings has filed a writ of summons to claim outstanding certified and uncertified sums, retention sums, late payment interest, and post-determination losses. DCSB’s application to stay this court action was dismissed.
• Writ of Summons against KSKL: Legal action against KSKL for breach of Corporate Guarantee is ongoing.
• Winding-up Petition against KSKL: A winding-up petition against KSKL was struck off by the High Court, with liberty for GDB Holdings to file afresh.
• Writ of Summons against Paradise City Sdn Bhd (PCSB): GDB Holdings is seeking to compel PCSB, a KSKL subsidiary, to register a charge over land as security.
• Claim from Signature Cabinet Sdn. Bhd. (SCSB): SCSB, a sub-contractor, has initiated an adjudication proceeding against GDB Holdings for RM6.73 million plus interest and costs.

While GDB Holdings’ solicitors have consistently been successful in fending off challenges and enforcing adjudication decisions, these litigations are protracted and complex. The company has affirmed its commitment to continue legal proceedings for debt recovery.

Dividend Announcement

In a positive development for shareholders, the Board has approved the declaration of a first interim single-tier dividend of 0.5 sen per ordinary share for the financial year ending 31 December 2025. This amounts to approximately RM4.69 million and will be paid on 26 June 2025, with the entitlement date set for 17 June 2025.