Gamuda

[winston]

not vested

Gamuda (GAM MK) 4QFY24: Slightly Miss Expectations;
Outlook Still Optimistic

Gamuda delivered sequential revenue and earnings improvements but slightly missed our full-year expectations.

In the post-results briefing, management was confident that the group will chart meaningful growth in FY25, underpinned by a robust construction orderbook pipeline and property sales on both the local and overseas fronts.

Meanwhile, the potential inclusion into the KLCI index in the upcoming review is a fresh re-rating catalyst.

Maintain BUY with a higher target price of RM9.16.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... 0(GAM%20MK)%20240927.pdf?utm_medium=email&_hsenc=p2ANqtz-8tubNwfK7Yl0D2YaGQjqb13iyk9VvqbXUmLP95JtpPngYk8qzeVcqbsJgNOiga1KYFV323bTzEUA6cGklZ_npLWuDD9w&_hsmi=326528334&utm_content=326528334&utm_source=hs_email

[winston]

not vested

Earnings a miss; orderbook guidance raised

4QFY24 earnings missed expectations.

Proposes a 1-for-1 bonus issue.

Raised its orderbook guidance to RM30bn-35bn by end-CY24F.

Reiterate Add and SOP-derived TP of RM9.50.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... A0B9CDF72F

[winston]

Gamuda (GAM MK) Structuring Growth Parameters

Gamuda’s colossal growth prospects are fuelled by progressive roll-out of domestic mega projects, data centre job flows and robust tender pipelines in overseas markets.

Meanwhile, the group’s property division will be boosted by both local launches and Vietnam’s QTPs.

Coupled with tailwinds from imminent margin expansion, Gamuda’s bargain valuations, decent earnings visibility and potential inclusion in the upcoming KLCI review re-affirms our BUY rating.

Maintain BUY. Target price: RM9.16.

Source: UOBKH

https://39646150.fs1.hubspotusercontent ... 0(GAM%20MK)%20241014.pdf?utm_medium=email&_hsenc=p2ANqtz-8ncc9nTOBsasGMlMjLRAYlNoyKYRWqg_qvWhtv6AKU8YXoed9aIO921Nxu5hmekuyc2Oo3jNL_8IrZdnOnT5k5Y3iDYQ&_hsmi=328934278&utm_content=328934278&utm_source=hs_email

[winston]

not vested

A sizeable win in Taiwan

Positive surprise; raising TP to MYR9.60

Gamuda’s latest MYR3.2b E&C win for a Taiwan MRT project has lifted its outstanding orderbook to MYR28.7b, further strengthening its earnings visibility.

This contract win is a positive surprise and comes with MYR8.1b of additional works in about 3 years’ time, sustaining the project’s work momentum for at least the next 10 years.

We maintain our earnings forecasts, having imputed job win assumptions, but raise our RNAV-based TP to MYR9.60 from MYR8.70. We reiterate our BUY call on the stock.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/412525.pdf

[winston]

not vested

Formalises on Upper Padas HEP works

Orderbook reaches MYR31b; maintain BUY

We estimate Gamuda’s outstanding E&C orderbook to have reached MYR31b, including the latest Upper Padas HEP works.

This latest contract award is expected, after the acceptance of a Letter of Notification in Sep 2024 by UPPSB to develop this project.

We maintain our earnings forecasts for Gamuda, having imputed job win assumptions, our RNAV-based TP of MYR9.60, and BUY call on the stock.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/413439.pdf

[winston]

not vested

Gamuda records higher 1Q net profit of RM205.39mi, orderbook hits record-high of RM30bil

Orderbook of RM30bil and unbilled property sales of RM6.9bil.

Net gearing of 39%, well below its self-imposed gearing limit of 70%.

In the first quarter ended Oct 31, 2024, Gamuda recorded a net profit of RM205.39mil, up from RM195.04mil in the year-ago quarter, which translates to an earnings per share of 7.31 sen against 7.26 sen previously.

Earnings from construction projects growing 20%, although property earnings decreased 17%.

The group reported revenue of RM4.14bil in the quarter under review, against RM2.8bil in the previous corresponding quarter, a 47% jump owing to stronger construction revenue

Source: The Star

https://www.thestar.com.my/business/bus ... of-rm30bil

[winston]

not vested

Gamuda (GAM MK) 1QFY25: Seasonally Slower Start;

Multi-year Upcycle Still In The Making Off to a slow start, Gamuda delivered softer earnings due to slower construction progress billings and absence of lumpy revenue recognition for Vietnam QTPs.

That said, earnings will pick up strongly for the rest of FY25 as progress billings ramp up.

More importantly, investors will focus on Gamuda’s record-high construction orderbook with visible upsizing potential, besides imminent inclusion in the KLCI index which premises a valuations re-rating.

Maintain BUY with a higher target price of RM11.11.

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://39646150.fs1.hubspotusercontent-na1.net/hubfs/39646150/Research/Gamuda%20(GAM%20MK)%20241212.pdf?utm_medium=email&_hsenc=p2ANqtz--YMUXf9L9qq__FHwf-vM2JjSqMddV8Sm8fGrwVbPPjnSTVsEbD0VVxaLW-3qPuUOV8mj62q8pviffVWc6B-a0BxS7XCQ&_hsmi=338366188&utm_content=338366188&utm_source=hs_email

[winston]

1QFY25: In-line

Earnings in-line; maintain BUY 1QFY25 core net profit (CNP) of MYR205m was in-line, at 18% of our FY25E.

We expect earnings to pick up in subsequent quarters on gradual margins enhancement from a rising mix of its Malaysia E&C projects; we thus make no change to our forecasts.

A 10sen interim DPS (cum 1-for-1 bonus issue going ex- on 19 Dec) was also in-line.

On rolling forward valuation and updating for latest balance sheet disclosures, our RNAV-TP is raised to MYR10.50 from MYR9.60, implying 22x FY26E PER (+1.5SD of mean). BUY.

Source: Maybank

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://mkefactsettd.maybank-ke.com/PDFS/426345.pdf

[winston]

Gamuda Land eyes RM14bil sales in Vietnam

By ELIM POON

Gamuda Land, the property arm of Gamuda Bhd, plans to invest RM7.1bil over the next five years in Vietnam, with a targeted gross development value (GDV) of RM14.3bil.

Ho Chi Minh City only saw 5,000 new condominium units launched last year, out of which 1,200 units came from our projects.

Meanwhile, for landed properties, only 500 units were launched citywide in the previous year, of which we contributed 230 units, accounting for about 50% of the market supply.

Targeted RM12bil sales by the financial year ending July 31, 2028 (FY28).

For FY24, Gamuda Land achieved a GDV of RM2.3bil.

FY22 closed with property sales of RM4bil, followed by RM4.1bil in FY23. By FY25, we reached another milestone, with sales of RM5bil and record revenue and earnings of RM4.2bil and RM411mil, respectively. This represents 28% of group revenue and 45% of group earnings.

On the whole, Gamuda Land has 12 QTPs across Vietnam, the United Kingdom and Australia with RM6.9bil in unbilled sales as of the first quarter of FY25 (1Q25). There are six, four and two QTPs in Vietnam, the United Kingdom and Australia respectively.

Looking ahead, Gamuda Land plans to invest RM10.5bil over the next five years, with a total GDV of RM26bil, focusing on growth corridors such as Vietnam, Malaysia and the UK.

By 2030, the company aims to achieve a balanced sales contribution of 40% from Malaysia, 45% from Vietnam, and 15% from the UK, Australia, and other regions.

Source: The Star

https://www.thestar.com.my/business/bus ... in-vietnam

[winston]

not vested

Gamuda share price could trade over RM8 if market value catches up with order book — CGS

Gamuda’s market capitalisation is currently 0.7 times its order book versus an average of 1.1 times since 2010.

The company’s own order book target of RM40 billion-to-RM45 billion for 2025 appears “conservative.

The 389-acre piece of land in Negeri Sembilan alone could yield contracts worth about RM19 billion over “a few years” for a campus of eight to nine data centres.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/740521