KUALA LUMPUR (Dec 19): GAMUDA BHD [] shares advanced on Monday after the company said it was ''upbeat about the outlook for its prospects for the remaining financial year after its earnings climbed 49.5% to RM132.32 million in the first quarter ended Oct 31, 2011, from RM88.53 million a year ago due to higher contributions from all divisions.
At 9.30am, Gamuda rose six sen to RM3.06 with 479,200 shares done.
Gamuda expected a stronger performance this year supported by its ongoing CONSTRUCTION [] projects, continued strong property sales and steady earnings from the water and expressway divisions.
MIDF Research in a note Dec 19 said despite the potential erosion in Gamuda's stock interest after its removal from FBM KLCI Index today, Gamuda's fundamentals still remain intact.
The research house said should Gamuda-MMC secure the KVMRT tunnelling portion, its ''construction order book will reach up to RM RM6 billion-RM7 billion.
Also, the management mentioned that they are now eyeing several projects such as Selangor Langat 2 Water Treatment Plant and Gemas-Johor double tracking project (in participation with the existing contractor), it said.
'We upgrade our recommendation to BUY from Neutral previously with a new target price of RM3.62 (previously RM3.20).
'We derive our target price based on a PER of 14x (FY12 EPS of 22.7sen), which is 0.75 standard deviation below its 10-year average PER,' it said.
At 9.30am, Gamuda rose six sen to RM3.06 with 479,200 shares done.
Gamuda expected a stronger performance this year supported by its ongoing CONSTRUCTION [] projects, continued strong property sales and steady earnings from the water and expressway divisions.
MIDF Research in a note Dec 19 said despite the potential erosion in Gamuda's stock interest after its removal from FBM KLCI Index today, Gamuda's fundamentals still remain intact.
The research house said should Gamuda-MMC secure the KVMRT tunnelling portion, its ''construction order book will reach up to RM RM6 billion-RM7 billion.
Also, the management mentioned that they are now eyeing several projects such as Selangor Langat 2 Water Treatment Plant and Gemas-Johor double tracking project (in participation with the existing contractor), it said.
'We upgrade our recommendation to BUY from Neutral previously with a new target price of RM3.62 (previously RM3.20).
'We derive our target price based on a PER of 14x (FY12 EPS of 22.7sen), which is 0.75 standard deviation below its 10-year average PER,' it said.
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