Gamuda

[winston]

Secures Penang LRT E&C

Maintain BUY with a MYR5.25 TP

Gamuda’s latest MYR5b E&C win for the Penang LRT Mutiara Line has lifted its outstanding orderbook to MYR37b, further strengthening its earnings visibility.

This contract win (and value) is expected; now formalised after SRS Consortium (60% owned by Gamuda) was offered the construction after the Cabinet approved the Penang LRT project on 22 Mar 2024.

We make no change to our earnings forecasts, having imputed job win assumptions.

Maintain BUY with an unchanged MYR5.25 RNAV-TP.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/429821.pdf

[winston]

Gamuda (GAM MK) Shaken, Not Stirred

While the restriction on the US’ AI chip exports created an unprecedented selldown, we assess that Gamuda’s local DC contracts will not be hindered.

Moreover, Gamuda’s growth stems from multiple non-DC aspects, including large-scale infrastructure and renewables projects across Malaysia, Australia and Taiwan.

Gamuda’s solid fundamentals, backed by a record-high orderbook and inexpensive valuations, shall survive this consolidation. Maintain BUY. Target price: RM5.55.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

Construction - Strong Finish
Date: 2025-01-16
Firm: HLG
Price Target: 5.50

2024 domestic contract awards totalled RM44.2bn (+103% YoY) the highest tally since 2016.

Sequentially, there was higher value of DC contracts and CGPP projects.

We maintain OVERWEIGHT on the sector anticipating a sustained year in project flows anchored by conventional DCs & AI-DCs, infra rollout and buoyant private sector sentiments.

Gamuda (BUY; TP: RM5.50) remains our sector top pick due to diversified project exposure.

https://klse.i3investor.com/web/priceta ... arch/74166

[winston]

not vested

Gamuda Berhad - Secures RM8.3bn Penang LRT Segment 1
Date: 2025-01-14
Firm: TA
Price Target: 6.30

Secures Penang LRT Segment 1 Contract Worth RM8.3bn

https://klse.i3investor.com/web/priceta ... arch/74144

[winston]

Gamuda - Sealing The Deal In The Pearl Of The Orient; BUY
Date: 2025-01-14
Price Target: 5.83
Price Call: BUY

Maintain BUY and MYR5.83 TP, 22% upside with 2% FY25F (Jul) yield.

Gamuda's 60%-owned subsidiary, SRS Consortium, has been awarded a MYR8.3bn contract by Mass Rapid Transit Corp (MRT Corp) for Segment 1 (Silicon Island A to Komtar) of the Penang Light Rail Transit (LRT) Mutiara Line (Penang LRT).

The job scope includes the design and construction of elevated guideways, stations, a depot at Silicon Island A for light and heavy maintenance, at-grade park-and-ride facilities and external works.

Source: RHB

https://klse.i3investor.com/web/priceta ... arch/74146

[winston]

Time to pick up Gamuda stock - analysts

Data centre jobs only account for 7% of Gamuda’s current outstanding order book of RM37bil.

“Our financial year ending July 31, 2025 (FY25)-FY26 new job wins assumption of RM17bil-RM20bil includes RM3bil each from data centre projects.”

Appointed for the second time as Early Contractor Involvement (ECI) partners for a pumped hydro project in Australia.

With these two pumped hydro projects and a metro project - SLR East-Linewide, its potential order book in Australia this year is around RM20bil, it said.

Source: The Star

https://www.thestar.com.my/business/bus ... --analysts

[winston]

vested

Gamuda set for strong showing in FY26 as big projects gain steam

While 41% of the constructor’s RM37bil order book as of February consists of higher-margin local projects, many of these, such as data centres, the Upper Padas hydro dam in Sabah, and the Penang Light Rail Transit (LRT) project, are still at their early stages in terms of revenue recognition.

The construction progress of Gamuda’s higher-margin Eaton Park luxury residential development in Vietnam has not reached the threshold for meaningful recognition.
The project reported RM970mil in pre-sales for FY24, equivalent to 20% of total FY24 presales.

The group’s 1Q25 construction margins were modest at 5.4%, but local construction margins exceeded 10%. Gamuda has modeled an 8% margin for FY26 from 6% in FY24.

Gamuda will also be looking to build on its property success in Vietnam, with 19% of total gross development value of RM61bil as of last October, given strong underlying demand with property margins of about 15%.

The key downside risks for the group include delays in contract awards and higher raw-material costs, while key re-rating catalysts are more construction wins and stronger property sales.

Source: The Star

https://www.thestar.com.my/business/bus ... gain-steam

[winston]

vested

Gamuda says to sign several 'imminent' large contracts, as 2Q profit grows 4.8%

By Emir Zainul

Reported a 4.8% year-on-year increase in net profit for the second fiscal quarter

Net profit for the three months ended Jan 31, 2025 (2QFY2025), was RM218.85 million.

Revenue for the quarter came in at RM3.90 billion, a 17.2% increase when compared to the same period last year.

Sales in its property segment rose 56% year-on-year to RM1.1 billion in 2QFY2025, boosted by quick turnaround projects especially Vietnam’s Eaton Park development which has racked up over RM2 billion in sales within one year since its first launch in May 2024.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/749424

[winston]

2QFY25: Slight miss

A slight miss; maintain BUY

1HFY25 core net profit (CNP) of MYR424m was 38%/36% of our/street’s FY25E, with the miss vs. our forecast due to slow recovery in E&C margins.

We believe this to be a timing matter and lower just our FY25E CNP by 6%, while maintaining FY26/27E forecasts.

On considering an enlarged share base (new shares from DRP and ESOS), our RNAV-TP is trimmed to MYR4.95 (-5sen).

Maintain BUY; we like Gamuda for its earnings growth prospects, supported by its strong delivery track record and geographical reach.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/447367.pdf

[winston]

vested

2QFY25: Backloaded Progress Billings; 2HFY25 To Chart Meaningful Growth

Gamuda delivered resilient qoq and yoy earnings growth but missed consensus’ FY25 forecasts, mainly due to slower construction progress billings for recently-secured projects.

Nevertheless, we expect earnings to pick up in 2HFY25 on progress billing ramp-up and margin expansion from higher domestic project mix.

Gamuda’s impressive job wins and robust orderbook guidance are also forming the foundations for a record FY26-27.

Maintain BUY with an unchanged target price of RM5.55.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email