Gamuda

[winston]

Final quarter of highway earnings; maintain BUY

1QFY23 earnings and dividend were in-line.

The completion of sale of its tolled highways on 13 Oct means that highway earnings will no longer feature.

We make no change to our core earnings forecasts, but tweak FY23E headline net profit (-3%) as we align with actual one-off gain from the sale.

On adjusting our RNAV-TP to reflect the special MYR1b dividend which has gone ex- (to be paid from the proceeds of the highway sale) and a slightly enlarged share base, our revised TP is MYR3.95 (from MYR4.40).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/295268.pdf

[winston]

not vested

Bright prospects seen for Gamuda

Record-high order book, its chances of securing further projects such as in the mass rapid transit three (MRT3) and its presence in overseas markets that could cushion its risk exposure to any single country.

Source: The Star

https://www.thestar.com.my/business/bus ... for-gamuda

[winston]

not vested

Gamuda's Australia JV bags major road transport project worth RM3.03b

by Syafiqah Salim

A 60:40 joint venture (JV) of John Holland and Gamuda Australia was awarded the contract to deliver the Black Hill to Tomago Package of Works for the M1 Motorway Extension to Raymond Terrace.

Gamuda said the construction group expected a revenue of RM1.21 billion from the project.

The project is scheduled to begin in mid-2023.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/649203

[winston]

not vested

Gamuda to acquire RM636mil Australian transport projects

Acquired the Australian transport projects business (Downer Transport Projects) for an enterprise value of A$212 million (RM636 million).

Source: Bernama

https://www.thestar.com.my/business/bus ... e=smartech

[winston]

not vested

Expanding Footprint In Australia

Gamuda acquired a transport projects business in Australia as part of its effort to widen
its presence in the country.

This will enable the company to participate in more regional mega projects ahead.

Its all-time high orderbook and property unbilled sales bode well for its outlook.

Gamuda is also among the frontrunners for projects such MRT3 (Malaysia) and Suburban Rail Loop (Australia) given its strong track record and healthy balance sheet.

Maintain BUY. Target price: RM4.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 8275f920b6

[winston]

not vested

Acquiring expertise & capabilities in Australia
Maintain BUY with a higher TP of MYR4.45

We are positive on Gamuda’s acquisition of civil construction services in Australia that comes with a forecast work-in-hand of AUD2b.

Importantly, the business comes with expertise and capabilities in rail infra works which will give Gamuda an enhanced resume in vying for urban/suburban rail transportation projects in Australia.

We retain our earnings forecasts but raise our RNAV-TP to MYR4.45 (+13%).

We maintain our BUY call.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/304388.pdf

[winston]

vested

Beefing up presence in Australia

Gamuda executes its Australia growth strategy with RM636m acquisition.
The deal is EPS accretive at +25-29% to FY24-25F; valuations are attractive.
Maintain Add and RM4.69 TP; there is potential upside to TP from this deal.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 2AE0DD6201

[winston]

vested

Gamuda 2Q net profit rises to RM194.62mil

Gamuda posted a net profit of RM194.62 million in the second quarter (2Q) ended Jan 31, 2023 from RM177.13 million in the same period a year ago, attributed to stronger construction and property earnings.

Revenue also increased to RM1.44 billion from RM1.22 billion previously, it said in a filing with Bursa Malaysia.

Overseas earnings tripled, and contributed half of overall earnings compared to 22 per cent previously as our overseas projects picked up pace.

Source: The Star

https://www.thestar.com.my/business/bus ... rm19462mil

[winston]

vested

Gamuda (GAM MK)
2QFY23: Growth Driven By Overseas Projects

Gamuda reported core earnings of RM194m (+34% qoq, +10% yoy), contributed by higher overseas earnings from the construction and property divisions.

Gamuda is among the key beneficiaries for the mega projects’ rollout like MRT3.

Its recent job wins in Australia, Singapore, Malaysia and Taiwan, bode well for its regional prospect as it boosts orderbook to RM14b.

The disposal of highway concessions strengthened its war chest for future growth.

Maintain BUY. Target price: RM4.35.

Source: UOBKH

https://research.uobkayhian.com/content ... 6ed9c2eb38

[winston]

vested

Gamuda (GAM MK)
2QFY23: Strong pick-up in overseas contribution
Results above expectations; maintain BUY

Gamuda’s 2QFY23 PATMI was above expectations, bringing 1H core PATMI to MYR385m (+17% YoY); the latter at 54%/55% of house/street’s full-year forecasts.

The beat, relative to our forecast, was due to stronger overseas contribution, mainly coming from the SMW-WT (Australia) project.

We raise FY23E PATMI by 8%; unchanged for FY24-25E.

Our RNAV-TP is consequently raised to MYR4.60 (+15sen).

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/309903.pdf