Top Story : Gamuda – 1HFY07/10 Results To Disappoint Underperform
Sector Update
- Taking the cue from the still sub-par construction margins recorded by peers IJM and WCT in their justreleased Oct-Dec 09 results, we expect Gamuda’s 2QFY07/10 results to miss expectations.
- Cumulatively, we expect Gamuda’s 1HFY07/10 core net profit to come in at RM128-133m that is equivalent to only 44-46% of our full-year forecast and 42-43% of the full-year market consensus, in the absence of a strong recovery in construction margins.
- We are downgrading FY07/10 net profit forecast by 5%, having reduced our blended construction EBIT margin from 5% to 4.1%.
- Indicative fair value is trimmed by 3% from RM2.12 to RM2.05. Maintain Underperform.
RHB Equity 360° (Gamuda, SP Setia; Technical: Magna Prima)- 19/03/2010
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