Muristek
At 10.32am, the share price was four sen up to RM3.43, with 1.5 million shares traded. — Bernama pic
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KUALA LUMPUR, March 24 ― Gamuda Bhd’s share price was up in early trade on Bursa Malaysia after recording higher net profit for the second quarter (Q2).
Gamuda’s net profit for Q2 ended January 31, 2022 rose to RM177.13 million from RM123.24 million a year ago supported by the better earnings in the construction and property divisions.
Public Investment Bank Bhd expects stronger performance from Gamuda for the second half of this financial year (H2 FY2022).
Cumulatively, the group reported net profit of RM329.5 million against RM233.5 million in the first half.
“Overall, the results are deemed above our and consensus estimates, meeting 55.3 per cent and 54.2 per cent of full-year forecasts respectively as we anticipate stronger H2 FY2022 earnings.
“Our earnings projections for FY2022-24 are adjusted higher by 13.1 per cent on average, incorporating stronger contribution from Vietnam’s property segment and profit margin expansion for the construction segment,” it said in a note today.
The research house foresees the group’s prospects for FY2022 to remain exciting, being the potential early beneficiary of the MRT3 rollout.
“It targets a RM20 billion order book by FY2023. Our Outperform call on Gamuda is affirmed with a revised sum-of-parts based target price of RM4.09 (from RM3.68 previously),” it said.
Meanwhile, Kenanga Investment Bank Bhd said the positive deviation against consensus is due to Gamuda’s conservative margin assumption for the construction segment, which should continue to see strong contributions for the rest of the year as savings from MRT2 project gets recognised towards project completion.
“We raise FY2023E earnings by 4 per cent after imputing higher FY2022E property sales of RM3.7 billion (from RM3.2 billion) and FY2023 contract replenishment of RM7.5 billion (from RM5 billion),” it said.
Kenanga Research has maintained Gamuda’s Outperform with a higher target price of RM3.70 post earnings adjustment.
At 10.32 am, the share price was four sen up to RM3.43, with 1.5 million shares traded. ― Bernama