Gamuda

Re: Gamuda

Postby winston » Sat Oct 12, 2019 8:09 am

vested

Budget 2020: Cabinet OKs MoF plan to take over four highways

KUALA LUMPUR: The government is going ahead with the plan to acquire four highways from GAMUDA BHD

The takeover, first announced by the Finance Ministry in June, has been approved by the Cabinet, Lim Guan Eng said in Budget 2020 speech today.

Under the plan, the government will pay RM6.2bil to acquire Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Sprint Expressway (SPRINT) and SMART Tunnel (SMART).

Gamuda is a substantial shareholder in all four highways.

The takeover will be funded via government-guaranteed borrowings.

"With the introduction of congestion charges that will be lowered by up to 30% of the present toll rates during near peak and normal hours and free during off-peak hours, this will provide a savings to the highway users nearly RM180mil a year, or RM2bil over the respective concession periods," Lim said.

There will be no extension of the existing concessions.

"The acquisition of these highways will not burden the government because the financing, operations and maintenance cost, will be entirely funded by the collection of toll and congestion charges without requiring any future funding by the government," Lim said.

Source: The Star

https://www.thestar.com.my/business/bus ... xa3EU82.99
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Re: Gamuda

Postby winston » Mon Oct 14, 2019 11:30 am

not vested

Gamuda Berhad (GAM MK)
All At Once


Gamuda has recently made its foray into Australia via a 50%-stake acquisition in Martinus Rail, where Martinus wishes to tender for rail infrastructure projects (up to A$8b) for infrastructure development.

Meanwhile, the Cabinet has approved the takeover of Gamuda’s tolled highways and an official announcement will be made soon.

Separately, the part of proceeds from the disposal of its tolled highways will be channelled as initial funding and will be used to kick-start the ambitious PTMP.

Maintain HOLD and target price of RM3.65. Entry price: RM3.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 9c8a0f7673
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Re: Gamuda

Postby winston » Sun Jan 05, 2020 8:48 am

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Gamuda Bhd
Price: RM3.90

Given its strong track record in executing mega infrastructure projects, Gamuda is arguably the best proxy to large construction jobs in Malaysia.

Some of the mega projects which were shelved immediately post the 14th general election, have been revived including Bandar Malaysia and the East Coast Rail Link.

There have been reports that the government is reviewing the MRT 3 and the High Speed Rail projects.

If the two mega infrastructure jobs were revived, we see Gamuda as a potential beneficiary.

Gamuda has submitted alternative proposals for the MRT3 to reduce the burden on the government’s finances.

MRT3 is an essential part of the Greater Kuala Lumpur Integrated Rail System to achieve public modal share target of 40% in urban areas by 2030.

There are also other opportunities for Gamuda including the Penang Transport Master Plan (PTMP). Gamuda has already received the letter of award for the PTMP from the Penang state government.

Besides Malaysia, Gamuda is looking for opportunities offshore. It has recently acquired a 50% stake in Australian-based Martinus Rail, Australia’s largest independent specialist rail constructor.

This acquisition will fast-track its expansion into the Australian infrastructure market, especially the Australian railway market which is estimated to offer about A$20bil of projects.

Gamuda’s proposed divestment of four highways to the Finance Ministry would result in the group receiving RM2.36bil in net proceeds, if the plan materialises.

The proceeds are expected to be used to fund future projects and reward shareholders with a special dividend.

Gamuda continues to enjoy cashflows from its highway concessions.

Based on consensus estimates, Gamuda currently trades at a price earnings ratio (PER) of 12.5x in FY20, which is at a discount to the market, while dividend yield is 3.9%.

Source: UOB
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