[%FvgZ%] 
Research by TA
Sell - TP of MYR0.22

“A Disappointing 9MFY24 Results ” 

Excluding an extraordinary gain of RM7.0mn, GADANG’s 9MFY24 core earnings of RM7.1mn (+11.6% YoY) came in below our expectations, accounting for only 42.3% of our full-year estimates. The negative variance was largely due to: (i) slower-than-expected work progress in the construction division, and (ii) higher-than-expected operating costs in both the construction and utilities divisions. Following the earnings revision, we lower our SOP-derived target price to RM0.22 (from RM0.23) after rolling forward our valuation base year to CY25 earnings. Maintain Sell.

Analyst(s):
Raymond Ng Ing Yeow 
[%EIUe%]

$KLSE-GADANG 
Research by TA
Sell - TP of MYR0.22

“A Disappointing 9MFY24 Results ” 

Excluding an extraordinary gain of RM7.0mn, GADANG’s 9MFY24 core earnings of RM7.1mn (+11.6% YoY) came in below our expectations, accounting for only 42.3% of our full-year estimates. The negative variance was largely due to: (i) slower-than-expected work progress in the construction division, and (ii) higher-than-expected operating costs in both the construction and utilities divisions. Following the earnings revision, we lower our SOP-derived target price to RM0.22 (from RM0.23) after rolling forward our valuation base year to CY25 earnings. Maintain Sell.

Analyst(s):
Raymond Ng Ing Yeow 
raymondng@ta.com.my