It was reported that Gamuda will bid for the role of project delivery partner for an integrated transportation project on Penang island worth rm5.5 billion. The project could be the next kicker to its earnings growth.
Meanwhile the delay in the formal approval for the KVMRT Line 2 project is due to the more for studies. The project will most likely go through and MMC-Gamuda KVMRT Sdn Bhd has already started the preliminary works.
Management is now (July 2014) more sanguine that the issue involving its associate SPLASH will be resoled.
The entire MRT construction expected to stretch till 2021, will provide long term order book visibility for Gamuda. In addition, clinching the Gemas-Johor Baru doubled track rail, KL-Singapore HSR and the Penang integrated transport projects will also boost its order boon significantly and enhance its future earnings growth.
The disposal of SPLASH could be resolved by end 2014 or early 2015 and the eventual pricing could be closer to its NAV of rm2.54 billion as at end Dec 2013.
No comments:
Post a Comment