Gamuda

In the near term, the company is expected to secure the lead role in even more mega projects such as the two new KVMRT lines to be unveiled in 2013 and more railway jobs nationwide over the next few years from Nov 2012.

 

Its ability to land large contracts, given the ambitious plans for infra buildup put forward by the government, has the company on close watch by the investment community. And with the GE around the corner, the change in company’s shareholding dynamic has captured investor attention. While some Gamuda directors and substantial shareholders were paring their equity holdings, MD Datuk Lin raised his stake to 3.25% as at Nov 5, 2012. Lin raising his stake in Gamuda shows his commitment to and confidence in Gamuda. But as his five year term expires in June 2013, the market has also been wondering whether Lin will stay on for another term.

 

Market observers viewed that Lin intends to renew his contract for another five years from 2013 as he anticipates more opportunities in the construction and real estate sectors. He acquired more shares in Gamuda (Nov 2012) as he believes the current (Nov 2012) valuations are attractive.

 

It is also expected that the company to post record profits in the next three years from 2012 with a positive outlook to translate into gains in the company shares.

 

Gamuda’s fundamentals remain strong with an existing order book of rm4.8 billion and prospects of clinching over rm10 billion worth of jobs in 2013.

 

The feasibility study on additional KVMRT lines within the Klang Valley should be finalized by end 2012. Gamuda tips the government to approve the new lines by 1QFY2013.

 

For now (Nov 2012), the market will be closely watched whether Lin’s contract is renewed to ensure management continuity.

 

The company property projects include the Kota Kemuning and Horizon Hills in Johor and real estate jobs in Vietnam .