KUALA LUMPUR: CIMB Equities Research said although Gamuda's annualised 1HFY7/11 core net profit made up 99% of its forecast and 98% of consensus, it'' considered the performance to be above expectations.
It said on Friday, March 25 that it expects 2H11 to be stronger due to the gradual rise of CONSTRUCTION [] margins as key projects enter their mature phase.
'The reason for the deviation was our underestimation of EBIT margin. We now up our FY11-13 EPS forecasts by 8-10%, which raises our RNAV-based target price from RM5.45 to RM5.60,' it said.
CIMB Research said these strong results could catalyse the stock, along with project awards and newsflow on the MRT project for which Gamuda is the PDP and potentially the contractor for the tunnelling works.
'The RM6bn-7bn tunnelling portion for the SBK line is expected to be awarded in early 2012. We reiterate our OUTPERFORM call,' it said.
It said on Friday, March 25 that it expects 2H11 to be stronger due to the gradual rise of CONSTRUCTION [] margins as key projects enter their mature phase.
'The reason for the deviation was our underestimation of EBIT margin. We now up our FY11-13 EPS forecasts by 8-10%, which raises our RNAV-based target price from RM5.45 to RM5.60,' it said.
CIMB Research said these strong results could catalyse the stock, along with project awards and newsflow on the MRT project for which Gamuda is the PDP and potentially the contractor for the tunnelling works.
'The RM6bn-7bn tunnelling portion for the SBK line is expected to be awarded in early 2012. We reiterate our OUTPERFORM call,' it said.
No comments:
Post a Comment