GAMUDA(5398) share can continue to buy???? TP 4.20

AMRESEARCH has maintained a "buy" call on Gamuda Bhd but increased its fair value to RM4.25 from RM4.20 previously, taking into account the maiden contributions from the Sungai Buloh-Kajang mass rapid transit (MRT) project and the Madge Mansion development in the U-Thant area, Kuala Lumpur.

AmResearch, in a research note today, said the increasing newsflow on the MRT project, targeted to commence work by July, would likely re-galvanise investor interest in the company.

With its role as project delivery partner for the MRT project already established, other significant development in the project would lend further improvement to Gamuda share price, it said.

For the Madge Mansion, he said, the development consisting of 50 condominiums with a gross domestic development of RM250 million aimed to be launched in the financial year 2012, would further contribute to the company's domestic revenue.

However, a further delay in the Ipoh-Padang Besar double tracking project due to land acquisition issues would partly mitigate the contributions from the MRT project and Madge Mansion development. - BERNAMA

 

 

Maybank IB Research says Gamuda’s (5398.KU) 2Q FY11 results “should at least meet our forecast for a 26% growth in FY11 net profit” to MYR355 million. Gamuda delivered MYR88.5 million in net profit in 1Q (+11% on year and +16% on quarter), which made up 25% of the house’s full-year forecast. “The sequential quarterly earnings uptrSee Title, which started in 4Q FY09, may continue into 2Q FY11 as major construction works, like the double-tracking rail, have entered matured phases. Margins should at least sustain,” says Maybank. 2Q may however feature a MYR30 million impairment on its Yenso project in Vietnam due to the devalued VND (but likely just balance sheet item) while construction business will likely “unperturbed” by unrest in the Middle East, it adds. Gamuda’s only exposure in the region is the New Doha International Airport project with MYR200 million works outstanding. Results are expected on March 24. Maybank keeps the stock at Buy with an unchanged MYR4.45 target. The stock is down 0.5% at MYR3.74.

my target price for GAMUDA is RM4.2  and GAMUDA-WD is RM1.80