Monday, April 23, 2012

Gamuda: Maintain Buy - MYR8.28b, the magical number

Enhanced visibility. MMC-Gamuda JV's MYR8.28b win for the KVMRT Sg Buloh-Kajang (SBK) tunnelling works has enhanced its earnings visibility into 2017, and should provide for earnings growth, at least, into FY13-14. We raise our earnings forecasts marginally which have earlier imputed MYR3b job win potential for FY12. Our MYR4.10 RNAV-based target price is unchanged. Trading at just 12.3x one-year forward earnings (16x mean), the stock is undervalued. Maintain Buy.

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Source: Maybank Research - 23 April 2012

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