Muristek
KUALA LUMPUR, March 18 ― Maybank Investment Bank (IB) 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 (E&C) 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.
“A highway trust for its four tolled urban highways, if it materialises, will unlock value.
“We raise earnings forecasts to incorporate its recent E&C wins. Our new real net asset value (RNAV)- target price (TP) 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 (KVMRT3) undergound works based on its strong delivery track record and balance sheet, and cost advantage position with a fully depreciated tunnel boring machine (TBM) fleet.
As at noon, Gamuda's share price was 6 sen lower at RM3.32 with 905,500 shares traded. ― Bernama