KUALA LUMPUR, March 18 ― Maybank Investment Bank has maintained engineering and construction, property development and water and expressway concessions group Gamuda Bhd as a 'buy' based on the company's substantial order book replenishment and recovery in property sales.
In a research note, Maybank IB said Gamuda’s recent RM6.5 billion win in Australia reaffirms its capability, as it continues to target an even larger engineering and construction order book size - RM20 billion by mid-2023. Higher pre-sales could also be expected of its property projects as it embeds sustainability into both design and concept.“We raise earnings forecasts to incorporate its recent E&C wins. Our new real net asset value - target price is RM4.28 per share from RM4.00 previously,” it said.
The research firm remains optimistic on Gamuda securing the Klang Valley Mass Rapid Transit Line 3 undergound works based on its strong delivery track record and balance sheet, and cost advantage position with a fully depreciated tunnel boring machine fleet.You May Also Like