GDB wins RM1.02 billion construction contract in Desa ParkCity, boosting order book through 2031

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GDB wins RM1b contract in Desa ParkCity

Highlights

GDB secures RM1.02 billion construction contract from Perdana ParkCity for ParkCity Residences, scheduled for completion in August 2031, with a contract value 1.92 times its market capitalisation.
GDB’s net profit for the second quarter ended 30 June 2026 fell 39.3% to RM13.2 million, while revenue declined 21.2% to RM142.48 million.
The new contract strengthens GDB’s exposure to high-rise residential projects in Kuala Lumpur, while its order book extends through 2031.

This article was translated from the original. Read the original version by our correspondent here.

Contract details and project timeline

As reported by The Edge Malaysia, the contract was awarded to GDB’s wholly owned subsidiary, Grand Dynamic Builders Sdn Bhd, by Perdana ParkCity Sdn Bhd to build ParkCity Residences. The project comprises two towers of 49 and 63 storeys, housing 433 apartments, as well as a seven-storey podium with residential facilities and parking, and two levels of basement parking.

In a statement on Monday, GDB said construction is scheduled to begin in November and be completed in August 2031. The RM1.02 billion contract value is equivalent to approximately 1.92 times GDB’s market capitalisation of RM531.1 million at Monday’s close.

Executive director and acting group managing director Andy Lai Wee Young said Perdana ParkCity had entrusted GDB with major developments for more than a decade, reflecting confidence in its execution capabilities, workmanship and timely delivery. He added that the company was well positioned to sustain its performance, supported by a strong project pipeline in Peninsular Malaysia and East Malaysia.

Implications for group performance and operations

GDB’s working relationship with Perdana ParkCity dates back to 2013, with completed projects including One Central Park, Westside III and Park Regent, all in Desa ParkCity. The new contract further strengthens the company’s exposure to the high-rise residential construction segment in Kuala Lumpur.

For the second quarter ended 30 June 2026, GDB’s net profit fell 39.3% to RM13.2 million from RM21.75 million a year earlier, while revenue declined 21.2% to RM142.48 million from RM180.86 million. The weaker performance was mainly due to several projects nearing completion, including KL International Hospital in Bukit Jalil, a logistics hub in Shah Alam and Metrohub 4 Logistic Hub in Klang.

Earnings were also affected by higher administrative expenses following the expansion of the group’s structure to support its expansion into Sarawak and Sabah. GDB shares closed up half a sen, or 0.98%, at 51.5 sen on Monday.

In our earlier coverage of Menara Asia’s launch of Menarabena, we examined how the B2B platform connects contractors and developers with building material suppliers while providing certification, documentation and compliance information. The article also outlined its collaboration with CIDB through the establishment of an Information Centre in Shanghai to facilitate certificate applications, with the aim of improving supply chain efficiency without replacing existing certification requirements.

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