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Gabungan AQRS targets net operating cashflow of RM600mil

TheStar Wed, Aug 12, 2020 10:10am - 2 months ago


The company planned to use the anticipated cash inflow for working capital expenditure of RM300mil, potential dividend payout of RM200mil and the balance to be kept in its reserves, the research house said.

PETALING JAYA: With its secured contracts in hand as well as the potential property sales from its unsold gross development value (GDV) of about RM1bil, Gabungan AQRS Bhd is targeting to deliver net operating cashflow of RM600mil during 2020-2024.

This, UOB Kay Hian Research said, would be supported by its outstanding external construction order book of RM1.6bil as at end-March 2020 and anticipated property billings of up to RM1bil (driven from unbilled sales of RM162mil as of March 2020, and remaining unsold launched GDV RM840mil).

It will also be driven by optimisation of costs structure where the company is committed to reducing its operating cost by 40%.

The company planned to use the anticipated cash inflow for working capital expenditure of RM300mil, potential dividend payout of RM200mil and the balance to be kept in its reserves, the research house said.

UOB Kay Hian said while Gabungan AQRS would be selective in new tenders, it expected the company to maintain its construction margins should it secure work contracts from the rollout of mega projects and its operating costs are much leaner than its peers.

With the planned strategy in place, Gabungan AQRS is upbeat on turning into a net cash position from early 2022, from net gearing of 0.28 times as at end-March 2020.

The expected improvement in cashflow would further improve its position to potentially clinch new contracts in the future, including the high-speed rail (HSR), said UOBKayHian.






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