Wednesday, September 29, 2010

RHB Research raises Gamuda fair value by 14% to RM4.51

KUALA LUMPUR: RHB Research Institute raised its net profit forecasts for GAMUDA BHD [] for FY07/11-12 by 23% to 27% largely to reflect stronger property profits in Malaysia.

The research house said on Wednesday, Sept 29, the fair value was raised by 14% from RM3.96 to RM4.51.'' It maintained its Trading Buy call on the infrastructure-property company.

For the financial year ended July 31, 2010, Gamuda's earnings rose to RM280.69 million from RM193.69 million. Revenue was lower at RM2.45 billion compared with RM2.73 billion in FY09.

RHB Research said the FY07/10 net profit came in within its forecast and the market expectation.

Gamuda had said it was confident about securing the Cabinet approval for the RM36 billion MRT project 'before the end of the year'.'' It is optimistic that physical work can start as soon as by mid or late-2011.

Gamuda had also emerged one of the five final contenders for the RM1.5 billion Durkhan Highway 2 project in the Gulf states.

Gamuda is on track to launch the Tan Thang project in Vietnam in October 2010.'' However, the maiden launch of the Yenso Park project in Hanoi has been delayed to Feb 2011 from Aug 2010.


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