Gamuda Berhad Group’s (Malaysia) business in Malaysia declined but prospered in foreign markets, including Vietnam.
The first half of the year collected more than 33,500 billion VND, mainly from markets outside Malaysia
Gamuda Berhad Group (Malaysia) announced its second quarter report (ending January 31, 2024) showing revenue of nearly 6.2 billion MYR (about 33,557 billion VND), an increase of 70% compared to the first half of 2023. .
Of which, revenue from the construction segment reached nearly 4.7 billion MYR (about 25,439 billion VND), an increase of 90%. The real estate segment has revenue of more than 1.5 billion MYR (about 8,389 billion VND), growing 29% compared to the first half of 2023.
The above revenue mainly comes from international markets with a growth rate of 195%. 4.7 billion of the MYR 6.2 billion came from Gamuda’s projects abroad. Meanwhile, revenue from the Malaysian domestic market reached 1.5 billion MYR, down 28% compared to the first half of 2023.
The above revenue mainly comes from international markets with a growth rate of 195%. 4.7 billion of the MYR 6.2 billion came from Gamuda’s projects abroad. Meanwhile, revenue from the Malaysian domestic market reached 1.5 billion MYR, down 28% compared to the first half of 2023.
- Gamuda Berhad’s net profit in the first half of this year reached 403.8 million MYR (about 2,181 billion VND). Of which the international market contributed 257 million MYR, a growth of 76%. The domestic market contributed 146.8 million MYR in profit, down 24% over the same period.
Revenue and profit structure of Gamuda Group in the first half of 2024 (Photo: Financial statements).
More specifically, Gamuda Engineering’s construction segment’s foreign revenue increased fourfold, from MYR 1 billion to MYR 4 billion. Overseas net profit quadrupled, from MYR 33 million to MYR 138 million. Total revenue and net profit of Gamuda Land real estate segment grew by 29% and 46%, respectively.
In the 2023 annual report, Gamuda also said that the real estate segment contributed greatly to revenue and profits despite the challenge of inflation and rising interest rates.
Real estate sales reached 4.1 billion MYR (about 22,126 billion VND) in fiscal 2023, an increase of 2.5% compared to 2022. Of which, sales in Malaysia were about 2.1 billion MYR. Sales from international markets contributed MYR 2 billion.
Profit from real estate business reached a record of 315 million MYR (about 1,694 billion VND) compared to 310 million MYR (about 1,668 billion VND) of fiscal year 2022.
Gamuda Land’s sales growth is mainly due to the success of projects in Vietnam and QTP projects (Quick Turnaround Project).
“Make money” from the Vietnamese market
Gamuda Berhad’s second quarter financial report said that housing demand in Vietnam continues to increase, thanks to the market’s recovery due to lack of supply and the Government’s moves to support the real estate market. From August 2023, banks have reduced mortgage interest rates from 1% to 3% compared to the previous year, promoting home loan transactions.
That boosted Gamuda Land’s sales in Vietnam by 96% compared to the previous quarter, mostly coming from two projects Elysian and Artisan Park. In fiscal 2023, Vietnam is also the largest contributing market to Gamuda Land’s international sales, accounting for 76% of total international sales.
Present in Vietnam since 2007, this Malaysian corporation is the investor of two urban areas, Gamuda City with a scale of 274 hectares in Hoang Mai district, Hanoi and Celadon City with an area of 82 hectares in Tan Phu district, Ho Chi Minh City. Although the two projects have been implemented, they still contribute about 753 million MYR in sales in 2023.
During the period 2021-2023, Gamuda Land successfully carried out 3 M&A deals to expand its land fund. In October 2021, this company acquired a 5.6ha plot of land belonging to the commercial housing project on Ngan Ha street (formerly named Uni Galaxy – phase 2 of the Uni Town project) from Business Joint Stock Company. and develop Binh Duong with a value of 53.88 million USD (equivalent to 1,250 billion VND). The project is located in Thu Dau Mot City, Binh Duong province and was renamed Artisan Park.
In July 2022, Gamuda Land merged Nha Truong Tin Construction and Trading Company Limited, thereby owning a high-rise apartment complex in Thu Duc City, Ho Chi Minh City. This project has the trade name Elysian, with an area of about 2.8 hectares, total investment of nearly 2,930 billion VND.
In July 2023, a Malaysian real estate company acquired shares of Tam Luc Real Estate Joint Stock Company for 315.8 million USD (about nearly 7,200 billion VND). Tam Luc Company is the investor of Tam Luc Residential Area project (trade name The Riverdale) at the front of Mai Chi Tho Street, Thu Duc City, Ho Chi Minh City. The project has an area of about 3.68 hectares. Gamuda Land has changed the project’s name to Eaton Park.
