Monday, December 19, 2011

RHB Research: Gamuda results within expectations, FV RM3.02

KUALA LUMPUR (Dec 19): RHB Research Institute considered GAMUDA BHD []'s first quarter results to be within its expectations but below consensus as it expects weaker quarters ahead.

The research house said on Monday that Gamuda could face a depleting CONSTRUCTION [] orderbook and lower property profits.

RHB Research said Gamuda guided that by April 2012, cumulatively, 28 work packages (including the RM7 billion to RM8 billion tunnelling package) of the Sg Buloh ' Kajang (SBK) Line of the Klang Valley MRT project worth a total of RM9 billion (45% of total estimated cost) wouldl have been awarded.

'The market is likely to take this with a pinch of salt, in our view. Given the very noticeable slowdown in the local property market of late, we feel that Gamuda's property sales target this year may not be achievable,' it said.

RHB Research maintained its Market Perform on Gamuda with fair value of RM3.02.

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