How does Gagasan Nadi Cergas plan to sustain long-term growth with its dual business model?

Question

Accepted Answer

Gagasan Nadi Cergas Plans Long-Term Growth Through a Dual Business Model Comprising Concession Income and Construction Orders

Gagasan Nadi Cergas Bhd intends to sustain its long-term growth trajectory by leveraging a dual business model. This model integrates stable recurring income generated from its concession assets with revenue derived from its existing construction order book. The company further plans to strengthen its concession segment through the prospective acquisition of Konsortium PAE Sepakat Sdn Bhd (KPS).
Bolstering the Concession Business with KPS Acquisition

The group is actively pursuing the addition of Konsortium PAE Sepakat Sdn Bhd (KPS) to its portfolio. KPS operates as a concessionaire for polytechnic hostel assets. This strategic acquisition is anticipated to secure future cash flow streams for Gagasan Nadi Cergas. Furthermore, it will allow the company to extend its in-house facilities management services to encompass KPS’s existing concession assets.
Integrating Recurring Income Streams

Gagasan Nadi Cergas's operational strategy is built upon the synergy between its two core revenue-generating segments. The concession assets provide a foundation of stable, predictable recurring income. This is complemented by the dynamic revenue potential of its construction order book, which comprises projects to be recognised until 2021, valued at approximately RM459 million as of March 31.
Diversified Construction Project Portfolio

The company's construction division is engaged in a variety of ongoing projects across Malaysia. These include the construction of a cardiology centre for Serdang Hospital in Selangor, Maktab Rendah Sains MARA in Bagan Datuk, Perak, and Perbadanan PR1MA Malaysia Homes Pasir Mas (Phase 1) in Kelantan. Additionally, Gagasan Nadi Cergas is involved in developing Rumah Selangorku Putra Heights and Bukit Raja in Selangor, as well as a public residential development in Putrajaya. The group is also undertaking its own property development ventures, such as Antara Residence in Putrajaya and the Selindung Ulu Yam housing scheme in Selangor.

Reading history

Hide →

This history is cleared when the page is closed.

How does Gagasan Nadi Cergas plan to sustain long-term growth with its dual business model?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends