Gabungan AQRS shares actively traded on strong Q3FY18 results

Gabungan AQRS shares actively traded on strong Q3FY18 results

KUALA LUMPUR, Oct 19 ? Gabungan AQRS Bhd’s shares were actively traded in the morning session today on strong third quarter 2018 financial year (3Q18) results.

At 11.46am, Gabungan AQRS’ shares perked 6.5 sen to RM1 with 5.02 million shares traded.

In a research note today, MIDF Amanah Investment Bank said Gabungan AQRS’ profit after tax and minority interest (PATAMI) for the nine-month period in the 2018 financial year was in line with its expectation.

“The company’s PATAMI continued to be robust, backed by its construction orderbook which grew by more than 100 per cent in 3Q18 due to better progress billings for the Sungai Besi-Ulu Kelang Highway and Sultan Ahmad Shah Administration Centre projects,” it said.

As of 3Q18, Gabungan AQRS’ outstanding orderbook stood at RM2.4 billion, providing earnings visibility for the next three years.

MIDF said the company’s management was committed to ensure the fundamentals of the company’s business operations continued to be managed effectively.

“This was done to safeguard margins, while keeping its long-term operations stable and healthy,” it said.

Moving forward, MIDF said it expected to see a better marginal profile from Gabungan AQRS through a better revenue-stream mix.

It added that Gabungan AQRS’ earnings forecast also remained intact, supported by the company’s strong orderbook and brighter prospect in the property segment.

The investment bank has maintained its “buy” call on Gabungan AQRS but revised the target price lower at RM1.87 from RM2.30 previously. ? Bernama