KUALA LUMPUR: Gamuda Bhd‘s prospects stay rosy given the enhancing outlook on the development sector coupled with the potential roll out of the federal government’s mega tasks such because the Mass Speedy Transit 3.
MIDF Analysis mentioned in a observe that it expects Gamuda to proceed delivering stellar income and earnings in FY22, and maintains the inventory as its high choose.
“Identified for its railway and tunneling experience by way of its JV outfit MMC-Gamuda, we count on Gamuda to be among the many frontrunners for the upcoming MRT3 tenders that can be referred to as in Could for 5 turnkey contract packages, 4 of that are construction-related.
“We additionally consider the group will find yourself profitable the lion’s share of
the MRT3 contracts, which has a venture tenure of eight years, which can present Gamuda strong earnings visibility,” mentioned MIDF Analysis in a report.
On Gamuda’s current earnings, the analysis agency mentioned 2QFY22 core web revenue of RM174.8mil was inside its and consensus expectation at 49.8% and 54.5% of full-year estimates respectively.
Nevertheless, the analysis home downgraded Gamuda to “impartial” because it believes the upsides have already been priced in on the again of constructive information circulate over the previous month.
In the meantime, Kenanga Analysis raised its FY23 contract replenishment goal for Gamuda to RM7.5bil from RM5bil beforehand.
It maintained its FY22 earnings forecast however elevated its FY23 estimate by 4% after imputing the upper contract replenishment goal and better FY22 property gross sales of RM3.7bil.
It repeated “outperform” with a better sum-of-parts goal worth of RM3.70 post-earnings adjustment.
“We like Gamuda’s worldwide publicity and innovativeness to create its personal jobs amidst the difficult replenishment outlook,” it added.