Gamuda

Gamuda

Postby winston » Mon Jun 20, 2011 10:01 am

Not vested


Earnings Revision/Risk

• We maintain our earnings forecasts for FY11-12, but note the potential upside from the bagging of the RM13b-14b MRT tunnelling works and
sales from Vietnam projects.


Valuation/Recommendation

• Maintain BUY with a target price of RM4.40. Our target price factors in contributions from the following:
a) RM13b MRT project (36 sen/share increment to our RNAV) given the project’s increased visibility,
b) RM10b Yenso Park (27 sen/share increment to our RNAV), and c) rollover of our valuation for the construction and property segments to FY12.

Our sumof-the-parts target price implies FY12F fully-diluted PE of 21x (below its +1SD PE of 23x).


Source: UOBKH
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Re: Gamuda

Postby winston » Tue Jun 24, 2014 7:50 pm

CIMB Research sees Gamuda as laggard, advises Buy
June 20, 2014

KUALA LUMPUR: CIMB Equities Research says Gamuda is a laggard and is trading below its worst-case realised net asset value (RNAV) and advises investors to accumulate the shares.

It said on Friday Gamuda's results for the third quarter of FY14 are likely to be released on June 26.

“We expect a strong on-year showing from the construction segment given the rapid progress of the Mass Rapid Transit (MRT) Sungai Buloh-Kajang line, which has crossed 45% financial progress for the underground portion and 30% for above ground.

“On the water deal, 45%-owned SPLASH is now the only water concessionaire that has yet to strike a deal with both the federal government and the Selangor state government,” it said.

CIMB Research said based on its checks and the state's deal structure with Puncak Niaga, it believes there is a possibility of a better deal for Gamuda.

On the progress of MRT 2,it expected government execution to regain momentum with the official Cabinet approval, announcement of the proposed alignment and appointment of the project development partner (PDP).

“We do not expect major surprises from Gamuda's 9M14 results. The upcoming results briefing on June 26 is likely to focus more on the resolution to the water deal rather than fundamentals.

It appears that expectations have gradually gravitated towards the use of the water restructuring model in the state of Johor. The deal is the closest comparison with Splash as it was executed with a private concessionaire at one time book value. The concession agreement was replaced with an O&M licensing deal,” it said.


Source: The Star
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Re: Gamuda

Postby winston » Thu Jul 03, 2014 5:26 pm

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Gamuda (Share price: RM4.71, RM5.50)

Gamuda remains the best MRT proxy in Malaysia where Line 2 (Sg Buloh-Serdang-Putrajaya) is awaiting for official Cabinet approval.

We continue to like its chances for the tunneling works (RM5bn for a 50% share) and PDP role, given its cost
efficient track record so far for Line 1.

Source: DBS
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Re: Gamuda

Postby winston » Thu Oct 30, 2014 7:06 pm

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RHB Research maintains Buy on Gamuda

KUALA LUMPUR: RHB Research has maintained its Buy call on Gamuda with a target price of RM5.61, it said in a note on Thursday.

RHB said it likes Gamuda as it is the best proxy to public infrastructure spending in Malaysia given its dominant role in the RM73bil 3-line Klang Valley MRT project.

"It has reaped the best profits from the Klang Valley MRT project thanks to the 6% PDP fee anddouble-digit tunnelling margins, and poised to make an inroad tothe booming infrastructure and property sectors in Penang via a much anticipated winning bid for the PDP role of the RM27bil PenangTransport Master Plan," it said.

It added that Gamuda has finally obtained the green light from the Government to embark on the RM25bil Line 2 of the Klang Valley MRT project.

"With this, we believe it is on track to start work by mid-2016. Gamuda is the best proxy to the buoyant construction sector, given its dominant rolein Malaysia’s largest public infrastructure project," it noted.

It said the Government has formally appointed the 50:50 MMC-Gamuda JV as the project delivery partner (PDP) for the RM150bil elevated portion of the Sungai Buloh-Serdang-Putrajaya Line, which is also known as Line 2 of the Klang Valley MRT project.

"While the terms and conditions are still “to be negotiated and agreed”, we believe the key ones are unlikely to significantly deviate from those of Line 1, namely, “on-time delivery and within budget”, in exchange for a 6% PDP fee.

"For the RM10bil underground portion of Line 2, as per Line 1, we believe it is likely to be awarded on a Swiss challenge basis,ie via an international tender with the sole local bidder – MMC-Gamuda JV – being given the right to match the lowest/winning bid," it said.

Source: The Star
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Re: Gamuda

Postby winston » Sun Jan 03, 2016 9:13 am

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MONEM A. SALAM
President of Saturna Sdn Bhd
Stock pick: Gamuda Bhd


GAMUDA Bhd is a good construction proxy to buy into to ride out the challenging market environment.

The group has strong prospects in the next few years and has an excellent track record in carrying out infrastructure projects.

As a regional fund management company, we do keep a close look at the construction sector throughout Asean.

The most prominent feature we have seen in Malaysia, is that the government’s expenditure allocation for major infrastructure projects tend to be executed successfully, unlike some of its regional peers.

These projects are executed well via the project delivery partner structure. Note that Gamuda won two major projects as a PDP in 2015 – the RM27bil Penang Transport Masterplan Project and the RM25bil KVMRT Line II.

As an established construction player, Gamuda is set to make inroads on several fronts.

In 2016, we foresee that the group will be keen on bidding for Sarawak’s Pan Borneo Highway project. It has vast experience in road infrastructure works and stand a good chance of winning substantial contracts from this particular project.

Not many realise that Gamuda’s highway concession business is a vital and stable contributor to its cash flow.

Its water and expressway concessions segment contributed RM98mil in pre-tax profits in Gamuda’s latest quarter, or half of its overall pre-tax profits.

A strong balance sheet allows it to leverage when undertaking new construction projects.

We believe that Gamuda will have no trouble gearing up. It has been in a similar situation previously and successfully executed such ventures.

However, there are some caveats. The Government may yet consider reducing its budget given prevailing low oil prices. Any cuts will likely affect expenditure allocated towards infrastructure investments, which could slow down some projects.

Source: The Star
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Re: Gamuda

Postby winston » Mon Oct 09, 2017 9:58 am

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Construction and Property Divisions to Drive Growth

Outlook

The outstanding construction order book stood at RM7.8bn. Going forward, we expect stronger contribution from the construction division as construction activities at MRT line 2 and Pan Borneo Highway package accelerate.

We expect the property division to perform well, driven by strong sales achieved in FY17 and positive outlook for the overseas property projects.

For domestic property projects, sales of landed properties in townships are expected to remain resilient.

Valuation

Maintain our BUY call and target price of RM6.00, based on 20xCY18 construction earnings, 14xCY18 property earnings and 16xCY18 earnings from toll road and water concessions.

Source: TA Securities
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Re: Gamuda

Postby winston » Mon Oct 09, 2017 10:01 am

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Sep 29, 2017

Gamuda posted revenue and net profit of RM1013.2m and RM102.8m respectively in 4QFY17.

We derived core net profit of RM198.6m for 4QFY17 after adjusting an one-off impairment of RM98.5m for SMART assets due to low traffic volume.

Core net profit in 4QFY17 saw a growth of 17.7% qoq and 32.3% yoy. The performance recorded in 4Q was mainly lifted by better performance in property development and club operations.

Valuation & Recommendation

Maintain HOLD with an unchanged target price of RM5.44 based on SOP valuation. Our target price also implies 20.6x FY2018F PER. Our fair value on Gamuda is yet to account of the PMTP’s PDP role due to the uncertainty on roll-out of the project.

We maintain our neutral stance as we deem current share price is fairly valued. We believe the anticipation of strong growth in FY17 onwards is reflected in current share price.

In addition, concern on the weak performance in its property division also limits the upside. Meanwhile, potential catalyst from PTMP’s PDP role remains tepid given its uncertainty and risk factors.

Source: Apex Securities
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Re: Gamuda

Postby winston » Wed Nov 08, 2017 8:57 am

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Trading Buy: GAMUDA-5398
(Last price: RM4.81, Potential upside +10.8%)

Company Profile
• GAMUDA is the largest builders in Malaysia, with jobs in Malaysia, India and the Middle East. Other businesses include toll concessions, property development and water assets.

Trading Catalyst

• HLIB institutional research maintains a BUY rating for Gamuda with unchanged TP of RM6.36, as Management reassured that it will still bid for the underground works from the winning consortium, given its tunnelling track record with SMART, MRT1 and MRT2 which will render it in a prime position to secure such works for MRT3. Management also maintains its RM10bn orderbook replenishment guidance over the next 2 years.

• Gamuda is trading at 14.7x FY18 P/E (18% below its average 10-year average P/E of 18x and 16% lower than its peers 17.6x). In terms of P/B, the stock is trading at 1.58x (17% below its average 10-year 1.9x and 37% lower than its peers 2.51x).

• Gamuda is poised for a relief rally after recent selling climax. A decisive breakout above the immediate resistance of RM4.91 will likely lift share prices higher towards RM5.04-5.33 levels. Key supports are RM4.65-4.73. Cut loss at RM4.60

Technical View
• Resistance: RM4.91 / RM5.04 / RM5.33
• Support: RM4.73 / RM4.65
• Cut loss: RM4.60

Key Financial Stats
• Trading at 14.7X FY18 P/E (peers: 17.6x)
• Trading at 1.58x P/BV (peers: 2.51x)

Source: Bloomberg, HLIB
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Re: Gamuda

Postby winston » Mon Dec 04, 2017 5:26 pm

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Sep 29, 2017

Still the best infra proxy

A record year if not for one-off provision for SMART

Strong construction earnings, property presales beat target

Still confident on RM10bn new wins per year for CY17/18F

Top large-cap pick; maintain BUY, SOP-derived TP of RM6.70

Maintain BUY rating and TP. Gamuda remains our top largecap pick for the sector. The start of a new earnings upcycle in FY18F anchored by its MRT Line 2 project and visible new order replenishment coming from ECRL and MRT Line 3 are key positives for the stock.

We maintain our BUY rating and TP of RM6.70 (based on SOP).

Source: Alliance DBS
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Re: Gamuda

Postby winston » Thu Dec 07, 2017 7:14 pm

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Gamuda eyes orderbook replenishment of RM6-RM8bil

We have around RM8bil in orderbook presently that will last us for the next three years”.


Source: The Star

https://www.thestar.com.my/business/bus ... m6-rm8bil/
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