Stock Name: GAMUDA
Company Name: GAMUDA BHD
Company Name: GAMUDA BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 3.53 |
Maintain HOLD, TP: RM3.53
Gamuda's 1HFY12 results beat both consensus and house expectations. This was mainly due to the much faster than expected earnings recognition and margin expansion from the construction of the Northern electrified double-tracking project (EDTP). There were no performance surprises from the other divisions (property, water and expressway concessions). However, we expect Gamuda's construction pretax profit (PBT) margin to decline from the current 12.4% (1HFY12 average) in coming quarters as the Northern EDTP tapers off towards completion but bounce back when the Sungai Buloh - Kajang (SBK) MRT tunnelling job goes into full swing in CY14. Maintain HOLD with target price at RM3.53, based on sum-of-parts. (refer to report for details)
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