Gamuda

[winston]

vested

HLIB expects stronger 2HFY23 for Gamuda driven by Australian projects

by Surin Murugiah

Hong Leong Investment Bank (HLIB) Research has maintained its “Buy” rating on Gamuda Bhd at RM4.14 with an unchanged target price (TP) of RM4.88 and said Gamuda reported 1HFY23 core PATAMI of RM385.0 million, slightly above house and consensus expectations at 52%/55% respectively.

“Award decision in Australia could come in 1QFY24 along with DTI’s maiden profit contribution (circa RM80-90 million).

“MRT3 award decision could come in 2HCY23 where targets are for civil and systems packages.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/660532

[winston]

vested

Overseas profits gaining stronger traction

1HFY7/23 results were driven by stronger earnings from overseas ventures.

Order book is set for a new record high of RM20.5bn with DTP acquisition.

Reiterate Add rating and RM4.69 TP (10% RNAV discount).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2F78599FE9

[winston]

vested

Gamuda set to post strong earnings due to its diversification strategy

Hong Leong Investment Bank (HLIB) Research, in a report, said Gamuda’s order book stands at RM14.5bil as of end-January 2023.

It said this would rise to RM20.5bil after injecting Australia-based DT Infrastructure Pty Ltd’s (DTI) estimated unbilled order book of RM6bil.

“The acquisition is expected to be completed in mid-calendar year 2023.

Source: The Star

https://www.thestar.com.my/business/bus ... n-strategy

[winston]

vested

A big step into London commercial property space
Neutral on the deal for now

We are neutral on Gamuda’s venture into London commercial property with the acquisition of Winchester House as part of its QTP strategy for its property ops.

While the potential return is sizeable (estd. equity IRR of 27%), our key concerns include that of locking in pre-lease arrangements with quality tenants, and a longer timeline to reduce its equity stake and exit the investment altogether.

No change to our earnings estimates and RNAV-TP as we monitor the development.
Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/310397.pdf

[winston]

vested

Gamuda (GAM MK)

Outstanding E&C orderbook was MYR14.5b (17% domestic, 83% overseas) as of endJan 2023.

This is expected to grow to MYR20.5b post acquisition of a civil construction business in Australia, which is expected to complete in mid-2023.

Gamuda (in a consortium) has submitted its tender for Package CMC 303 of the KVMRT3, which is believed to be worth MYR13.3b.

Gamuda is also eyeing the KVMRT3 system works which could be worth at least MYR5b.

Source: Maybank

[winston]

vested

Gamuda Expands Real Estate Strategy With Higher-Returns QTPs (Quick Turnaround Projects)

by Emir Zainul

The group’s property division, Gamuda Land, aims to double its annual property sales in five years using a two-pronged strategy, under which it will invest in higher QTP developments alongside its township developments.

QTP involves investing in opportunistic real estate developments with a five-year turnaround and an internal rate of return of at least 18%.

Within the last 18 months, the group has also deployed capital through four other properties: one each in London and Melbourne (West Hampstead Central and The Canopy respectively) and two in Ho Chi Minh, Vietnam (Artisan Park and HN2.8).

And when combined with our leading engineering and construction business, strategically as a group, we will have two strong core business engines (Gamuda Land and Gamuda Engineering) to drive growth in profitability and shareholder value in the coming years.

Source: theedgemarkets.com

https://www.theedgemarkets.com/content/ ... turns-qtps

[winston]

vested

Gamuda (CP RM4.15, Add, TP RM5.58) – On a new growth trajectory

We reiterate Add on Gamuda, with a higher TP of RM5.58, now based on SOP (previously RNAV-based TP of RM4.69), which translates to a P/E of 17x FY24F.

Our core net profit forecasts are largely in line at 107%/96%/94% of Bloomberg consensus’ estimates for FY23F/24F/25F.

Key re-rating catalysts are MRT 3 tunnel package win, clarity on federal government support for the Penang Transport Master Plan and higher property sales.


Downside risks

Potential labour issues in Australia could derail the construction progress of its projects
in the country.

The market expects MRT 3 to be rolled out by 2H23F or latest by 1Q24F. Slower-thanexpected progress will be negative for Gamuda and other contractors.

Gamuda is targeting FY23F property presales of RM4.5bn (+12% yoy). With higher cost
of borrowing and inflationary pressures now in Malaysia, there is a risk of the property
market slowing.

Source: CIMB

[winston]

not vested

RHB upgrades Gamuda to ‘buy’ with higher TP of RM4.95

By Isabelle Francis

88% of Gamuda’s outstanding order book is from overseas, thus warranting its upgrade, implying a 20% upside and circa 3% FY2024 (Jul) yield.

RHB Investment said it has now segregated the construction segment into the Malaysian and overseas divisions in its sum-of-parts(SOP) valuation.

It also adjusted its property segment’s discount to RNAV to 60% from 65%, premised on the ability of the Vietnam property market to continue to attract foreign investors, despite headwinds faced by local developers.

Notably, 90% of Gamuda’s total overseas gross development value (GDV) comes from projects in Vietnam.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/670509

[winston]

not vested

ESG 2.0: Still above average
Still above-average ESG score of 69

We have updated our expanded ESG tear sheet for Gamuda (our last review was in Sep 2022), based on its latest FY22 Sustainability and Corporate Governance reports, and have assigned an above average overall score of 69 (previously 68), based on its aggregated antitative/qualitative/
target-based metrics.

We noted progress especially towards managing its Scope 3 emissions.

We expect Gamuda to advance further in its ESG and sustainability efforts encapsulated in the Gamuda Green Plan.

TP: RM 4.60

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/324385.pdf

[winston]

not vested

CGS-CIMB expects Gamuda's core net profit to rise 7% in FY23F

By Surin Murugiah

Gamuda’s foray into Australia, now has RM14.6 billion worth of orders after acquiring DT Infrastructure Pty Ltd (DTI).

Orderbook of RM20.5 billion as at Jan 31.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/671782