Tuesday, August 7, 2012

Gamuda: Maintain Buy - Delivery on Track

Gamuda: Maintain Buy - Delivery on Track
  • Maintain BUY. Gamuda's robust MYR5.5b outstanding construction order book and MYR1.3b in unbilled property sales should translate into record profits in both FY7/12 and FY7/13.
  • The stock remains a BUY on undemanding valuations of just 11.5x 12M forward earnings. Our MYR4.10 RNAV-based target price meanwhile offers 19% upside. Major construction job flows expected next year, post 13GE, would be the next share price catalyst.
  • Meanwhile, its net dividend yield of 3.6% justifies building a medium-term position in this stock, in our view.
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Source: Maybank Research - 7 August 2012

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