Gamuda

[winston]

not vested

Gamuda (GAM MK)
3QFY22: Above Expectations, Property Leads Earnings Recovery

Gamuda reported core net profit of RM221.5m (+25% qoq, +56% yoy), largely
contributed by MRT2 and Celadon City.

Gamuda is among the key beneficiaries of the rollout of upcoming mega projects like MRT3.

Its recent job wins in Australia, Singapore and Taiwan also bode well for its regional prospects as it triples its orderbook to RM12.4b.

The disposal of its highway concessions also will strengthen its war chest for
future growth. Maintain BUY. Target price: RM4.09.

Source: UOBKH

https://research.uobkayhian.com/content ... d58b6c5f9f

[winston]

not vested

3QFY22: Strong!
Beat expectations; maintain BUY

Earnings positively surprised for the 4th consecutive quarter; the beat this time came largely from its property op.

9MFY22 net profit (+47% YoY) was 83%/89% of house/street’s FY22E.

We raise FY22E net profit by 14% in anticipation for the strong 3Q to sustain.

We also raise FY23/ FY24E net profit by 11%/4%.

Our RNAV-TP is tweaked to MYR4.20 (-8sen) on rolling forward valuations. We continue to like Gamuda for its delivery track record, strong balance sheet and ESG initiatives.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/267915.pdf

[winston]

Greater earnings visibility from Gamuda's RM1.97bil job win

Added boost to the group's outstanding orderbook, which had already provided earnings visibility until FY26.

Assuming conservative profit margin estimates of 5%, this water treatment plant project is expected to deliver an additional RM32.8mil in net profit annually until FY25,".

Huge presence in Australia with projects amounting to 59.2% of its current outstanding orderbook and the prospects of it securing more projects in the Land Down Under.

"Locally, our optimism lies in its ability with partner MMC to clinch the largest MRT3 package, the CMC303, which we estimate to be RM14.29bil," it said.

Sale of Gamuda's highway concession to Amanat Lebuhraya Rakyat, likely to be completed in august.

Reward its shareholders with a bumper dividend of about 38 sen per share, as well as strengthen its net cash position to north of RM1bil from the current debt level of RM1.1bil.

Source: The Star

https://www.thestar.com.my/business/bus ... il-job-win

[winston]

not vested

IA2022: Staying on course
IA2022 key takeaways; maintain BUY

We hosted Gamuda on our Invest ASEAN 2022 (IA2022) M’sia Corp Week recently.

Amid choppy waters in the broad construction sector - volatile material prices, labour shortages and slow award of new projects - Gamuda is on course in its targets for its E&C and property ops.

It has also identified a green-field renewable energy venture to rebuild its recurring income base after the sale of its highway concessions.

We make no change to our earnings forecasts, MYR4.20 RNAV-TP and BUY call.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/269523.pdf

[winston]

not vested

Gamuda (GAM MK)
Pre-Q for PTMP’s BL LRT

Positive earnings addition; maintain BUY

Pre-qualification (pre-Q) registration for EPCC works, including funding model and O&M for the Bayan Lepas LRT (BL LRT) project under the Penang Transport Master Plan (PTMP) was called by the Penang State yesterday.

Gamuda, a 60% partner in SRS Consortium which has been appointed project delivery partner (PDP) for the PTMP in Jul 2020, should see earnings addition in the form of PDP fees.

We have yet to incorporate any such PDP fees in our earnings forecasts for Gamuda.

We make no change to our earnings forecasts for now, and MYR4.20 RNAV-TP.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/270533.pdf

[winston]

not vested

Gamuda (GAM MK)
4QFY22: Record High From All Ends

Gamuda reported core net profit of RM259m (+17% qoq, +21% yoy), contributed by
higher earnings from the construction and property divisions.

Gamuda is among the key beneficiaries for upcoming mega projects rollout like MRT3.

Its recent job wins in Australia, Singapore, Malaysia and Taiwan bode well for its regional prospects as it triples its orderbook to RM14b.

The disposal of its highway concessions also will strengthen its war chest for future growth. Maintain BUY. Target price: RM4.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 6d1fe189ed

[winston]

Closing FY22 on a high note
Beats expectations again; maintain BUY

Earnings positively surprised for the 5th consecutive quarter; the beat came from its E&C and property ops – both topline and margin.

We lower FY23E/FY24E net profit by 6%/3% on removing expressway earnings with
the near completion of its tolled highways sale, mitigated by upward revisions in E&C job wins and property pre-sales assumptions.

Our RNAVTP is raised to MYR4.40 (+20sen) post updating for key parameters and house-keeping. Risk-reward remains positive; maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/282097.pdf

[winston]

vested

Transforming Into A “New” Gamuda

Gamuda is a prime beneficiary of the upcoming rollout of regional mega projects, such
as MRT3 (Malaysia) and Suburban Rail Loop (Australia) given its strong track record.

We came away from Gamuda’s session in our Asian Gems Virtual Conference feeling
optimistic on its prospects.

The completion of its highway disposal will strengthen its war chest for future growth. Its all-time high orderbook and property unbilled sales bode well for its outlook.

Maintain BUY. Target price: RM4.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 4d53710ade

[winston]

not vested

HLIB Research reinstates coverage of Gamuda, target price at RM4.15

by Surin Murugiah

Stock’s valuation looks attractive at FY2023/24/25 P/E multiple of 12.8x/11.3x/9.9x (-0.5SD) and P/B multiple of 0.9x (-0.5SD) despite still being in a contract upcycle .

Ramp-up of its RM15.3 billion order book and recognition of record high unbilled sales of RM6.2 billion.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... rice-rm415

[winston]

not vested

Gamuda posts all-time high net profit of RM1.17bil in Q1

Recorded an all-time high net profit of RM1.17 billion in the first quarter ended Oct 31, 2022 (Q1FY2023) from RM152.37 million a year ago backed by a one-off cash gain of RM1 billion from the divestment of four highways that was successfully completed in October 2022.

Anticipated this year’s performance to be driven by property sales, pick up in work progress of Sydney Metro West -- Western Tunnelling Package and Coffs Harbour Bypass projects in Australia, and works to complete the MRT Putrajaya Line following the sale of four highways to Amanat Lebuhraya Rakyat Bhd in October 2022.

Large construction orderbook of nearly RM15 billion and unbilled property sales of nearly RM6 billion.

Source: Bernama

https://www.thestar.com.my/business/bus ... 7bil-in-q1