Stock Name: GAMUDA
Company Name: GAMUDA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said it recently met up with Gamuda to discuss the proposed mass rapid transit (MRT) for Kuala Lumpur and saw strong incentives for the MRT to be implemented,.
It said on Thursday, Sept 9 that consultants are currently studying its feasibility and the results should be known by month-end.
"We see strong incentives for the MRT to be implemented, driven by the rakyat's needs and political will. Securing the tunneling portion would enhance Gamuda's value by 28 sen a share, which we think is likely. We continue to see the MRT generating more positive news. Upgrade to TRADING BUY," it said.
OSK Research said while it had not factored in any earnings impact from the MRT, it revised upwards its FY11-12 forecasts by 7%-13% by incorporating higher margins for its existing jobs and stronger property sales, which were the main takeaways from our recent meeting.
"Our revised SOP (sum of parts) based TP of RM4 implies a FY11 PER of 20.5 times, still below its historical average of 22x forward PER. Continued positive news on the MRT should serve to further rerate the stock. The year before the Double Track job was awarded, Gamuda was trading at an average forward PER of 27.1 times," it said.
Company Name: GAMUDA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said it recently met up with Gamuda to discuss the proposed mass rapid transit (MRT) for Kuala Lumpur and saw strong incentives for the MRT to be implemented,.
It said on Thursday, Sept 9 that consultants are currently studying its feasibility and the results should be known by month-end.
"We see strong incentives for the MRT to be implemented, driven by the rakyat's needs and political will. Securing the tunneling portion would enhance Gamuda's value by 28 sen a share, which we think is likely. We continue to see the MRT generating more positive news. Upgrade to TRADING BUY," it said.
OSK Research said while it had not factored in any earnings impact from the MRT, it revised upwards its FY11-12 forecasts by 7%-13% by incorporating higher margins for its existing jobs and stronger property sales, which were the main takeaways from our recent meeting.
"Our revised SOP (sum of parts) based TP of RM4 implies a FY11 PER of 20.5 times, still below its historical average of 22x forward PER. Continued positive news on the MRT should serve to further rerate the stock. The year before the Double Track job was awarded, Gamuda was trading at an average forward PER of 27.1 times," it said.
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