KUCHING: Analysts across the board was optimistic for Gamuda Bhd’s (Gamuda) outlook following a strong set of figures for the first half of financial year 2015 (1HFY15).
Yesterday, the stock dropped on Bursa Malaysia by five sen to RM5.15 per share with 9.01 million shares changing hands.
Public Investment Bank Bhd (PublicInvest Research) noted that Gamuda’s outstanding orderbook of RM1.6 billion depleted by another RM200 million to the second quarter with tunneling works almost fully completed and stations construction progress range between 50 to 75 per cent and on track to be completed within schedule.
“Billings have slowed down as the pace of the civil works started to taper off at this stage,” it said in its note.
“Profit before tax margin improves to 9.4 per cent in 2Q vis-a-vis 7.1 per cent in 1Q.
“As for Klang Valley MRT2, we understand that the RM25 billionn job is now three to six months delayed in roll-out due to changes in alignment. A new Bandar Malaysia station will be incorporated in Line 2 (originally in Line 3), resulting a longer underground portion but slightly shorter elevated stretches in the South.
“Public display is targeted by mid- 2015 and tender by mid-2016 onwards. PDP agreement is expected to be signed by mid-2015. Separately, the Penang Transport Master Plan, which Gamuda is bidding for the project delivery partners (PDP) role, is now expected to receive the outcome by mid-2015 (from end-2015 originally).”
Howver, MIDF Amanah Investment Bank Bhd (MIDF Research) forewarned of an oversupply of property in Iskandar.
This was outlined in the group’s new property sales of RM535 million for 1HFY15, a drop of 45 per cent year on year.
“Profit before tax (PBT) margin for its property segment in 1HFY15 was slightly reduced to 25 per cent. In view of current trend of local property presales particularly in Iskandar, Johor which is likely to persist through 2015-2016, management has cut its projection by 34 per cent on new sales to a target of RM1.2 billion.
“Nevertheless, Hanoi, Vietnamese market has shown signs of improvement in sales which has contributed to the Group’s current unbilled sales of RM1.5 billion.”
Maybank Investment Bank Bhd’s research division (Maybank IB Research) expect earnings growth momentum to reverse in FY16 due to the timing of construction project starts and slower property sales.
Nevertheless, Gamuda is a key beneficiary of mega infrastructure projects which are pending awards including the KVMRT 2, LRT 3 and Penang Transport Master Plan with its strong track record and extensive experience.
The Penang project’s PDP works with RM10 b illion to RM15 billion value that could be awarded in mid-2015 would level up orderbook to a new high.