not vested
Trading Buy: GFM - 0039
(Last price: RM0.505, Potential upside +19.8%)
Company Profile
GFM Services (GFM) is a pure-play Facilities Management (FM) service provider with a proven track record of 19 years’ experience in providing integrated facilities management (IFM) and consultancy services to public and private sectors.
Trading Catalyst
Excluding the RM5.9m one-off corporate exercises’ expenses, GFM’s earnings surged 36.4% YoY to RM13.5m on 17.9% growth in revenue to RM123.1m, driven by 1M earnings consolidation of newly acquired KPMD (completed in Nov 2018), new projects secured as well as the renewal and extension of contracts with higher rates
Share prices are likely to rebound further in anticipation of promising outlook ahead, underpinned by growing IFM market in Malaysia, robust order book of RM1.4bn (long term earnings visibility in FM and concessionaire) following the KPMD acquisition and strong renewal rates.
Uptrend intact to test RM0.55-0.605 zones after reclaiming 200D SMA.
Technical View
Resistance: RM0.530 / RM0.550 / RM0.605
Support: RM0.480 / RM0.470
Cut loss: RM0.460
Key Financial Stats
• Trading at 10.2x FY19E (17% below peers), supported by robust RM1.4bn order book.
Source: HLIB