Gamuda

[winston]

not vested

Postcards from Sydney
Maintain BUY call and MYR5.25 TP

We came away from our site visit to Gamuda Australia’s (GA) operations in Sydney feeling positive.

The Sydney Metro West – Western Tunneling Package (SMW-WTP) is progressing well.

Political ‘noise’ over the project has also receded.

Looking forward, GA has a AUD5b-AUD6b near term tender book with an eye on AUD2b tunneling works in Melbourne.

Judging from the infrastructure pipeline in Australia, there is a lot of room for GA to grow.

Maintain earnings estimates, BUY call and MYR5.25 SOP-TP.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/351320.pdf

[winston]

not vested

Slew of good news for construction

1QFY7/24 results met our expectations, construction revenue driven by overseas projects while property presales will catch up in upcoming quarters.

Slew of good news for construction, including the MRT win in Singapore.

Reiterate Add and SOP-based TP of RM5.65.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3DE53A7866

[winston]

not vested

An unjustified blue-chip construction laggard

On track to achieve RM25bn in new orders by FY25F; A$8bn potential new orders from Australia in near term including VOs for SMW-WTP

We think results due end-Mar24 will track guidance of doubling in FY24F revenue. Potential upside to pretax margins in FY25F-FY26F.

An unjustified laggard trading at CY25F P/E of 11x on the back of visible earnings growth. Reiterate Add and SOP-derived TP of RM6.50

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 2AA4B30573

[winston]

not vested

March 27, 2024

On track to achieve doubling of revenue

2QFY7/24 results met expectations. We expect a strong 2HFY7/24 and believe it is on track to achieve its target of doubling revenue for FY7/24F.

Gamuda remains confident of its RM25bn new order guidance by FY7/25F even without MRT 3. Near-term wins could be Penang LRT and data centres.

Reiterate Add and TP of RM6.50, based on SOP.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 37DC83D00A

[winston]

not vested

Gamuda 2Q net profit rises 7% as overseas projects continue to drive earnings

By Anis Hazim

Gamuda Bhd’s net profit rose 7.29% to RM208.8 million in the second quarter ended Jan 31, 2024 (2QFY2024) from RM194.62 million a year earlier.

Revenue more than doubled to RM3.33 billion year-on-year against RM1.44 billion in 2QFY2023.

Gamuda's net profit for the first half of the financial year 2024 (1HFY2024) declined 70.38% to RM403.84 million versus RM1.36 billion in 1HFY2023, while revenue surged twofold to RM6.14 billion in 1HFY2024 as compared to RM2.75 billion in the same period last year.

The resilience of the group is underpinned by a large construction order book of RM24 billion and unbilled property sales of RM6.7 billion.

On top of that, the group has a healthy balance sheet with a comfortable net gearing of 29%, well below its self-imposed gearing limit of 70%,"

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/706193

[winston]

vested

Gamuda among top losers after earnings forecast cut despite 2Q results meeting expectations

By Anis Hazim

The group’s earnings are expected to pick up in the coming quarters on the back of a record order book of RM26.1 billion and multiple jobs, both domestic and overseas, are in the pipeline.

Risks to our call include the delays in the roll-out of key public infrastructure projects in Malaysia such as the MRT3, rising input costs and labour shortage, risks associated with operations in overseas markets such as the change in government policies towards foreign businesses and forex, and liquidated ascertained damages (LAD) from cost overrun and delays.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/706296

[winston]

vested

Govt offers Gamuda’s 60%-owned SRS Consortium works on first segment of Penang LRT

By Chester Tay & Emir Zainul

The government has offered Gamuda’s 60%-owned SRS Consortium Sdn Bhd civil works contracts on the first segment of the Penang Light Rail Transit (Penang LRT) and hopes to conclude talks with the company within six months.

The first segment covers Silicon Island to Komtar and is part of the 29km Penang LRT that will also cross into Penang Sentral in Seberang Perai on the mainland to provide connectivity to the existing KTM Komuter and ETS train network.

Under Budget 2024, the federal government budgeted RM10 billion to take over the Penang LRT project, while downsizing the size of reclamation works originally planned under PTMP.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/706321

[winston]

vested

Analysts remain bullish over Gamuda's 2H outlook

Earnings are expected to pick up in the coming quarters as domestic construction scale up while lumpy property recognition comes in.

Multiple jobs in the pipeline with Australian shortlisted projects growing. Domestically, prospects on the Penang Light Rail Transit remained encouraging while the data centre pipeline provides robust visibility stretching five to eight years.

Frontrunner for the Bayan Lepas LRT and the tunnelling job for the MRT3.

Source: The Star

https://www.thestar.com.my/business/bus ... 2h-outlook

[winston]

vested

Gamuda shares hit new record high as CIMB flags potential data centre jobs

By Anis Hazim

Potential to secure another two data centre projects, including the AIMS Cyberjaya Block 3.

Gamuda indicated to analysts that the company is “quite confident” of clinching two new data centre mandates.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/706955

[winston]

Gamuda (GAM MK)
Scaling New Heights

Gamuda is set to deliver a record-high bottom line in FY24, backed by higher earnings from both the construction and property development divisions.

The outlook for the construction division remains resilient, underpinned by outstanding orderbook of RM24.1b and promising replenishment prospects.

Meanwhile, the property division is expected to record stronger earnings on lumpy recognition of unbilled sales and higher new property sales.

Maintain BUY. Target price: RM5.88.

Source: UOBKH

https://research.uobkayhian.com/content ... 29c4271fec