Gamuda orderbook target on track, works to pick up from 4Q onwards

KUCHING: Gamuda Bhd’s (Gamuda) sizeable orderbook is on track, with the continuous progress in the construction of KVMRT 2 and Pan Borneo Sarawak Highway, analysts observed.

Gamuda is also vying for works from the East Coast Rail Link ( ECRL) and KVLRT 3.

Maybank Investment Bank Bhd’s research arm ( Maybank IB Research) highlighted this in a recent report, and it also pointed out that Gamuda’s property sales for the financial year 2017 ( FY17) is ahead of its initial target.

“Construction of KVMRT 2 and Pan Borneo Sarawak Highway continue to progress, from financial completion at six and tjree respectively at end-April 2017.

“We expect works to have picked up in the fourth quarter of FY17 ( May to July 2017) and stronger into FY18,” it said, noting that outstanding orderbook stood at RM8.2 billion as at end-April 2017.

In terms of job wins, Maybank IB Research highlighted that Gamuda continues to target RM10 billion per annum for 2017 and 2018.

“Its 2017 target includes work packages from ECRL and KVLRT 3; its beyond- CY17 target includes KVMRT 3 and Pan Borneo Sabah Highway.

“As highlighted earlier (our note on June 28), project detai ls for KVMRT 3 are being finalised, with Cabinet’s approval expected by mid-2018, and project roll- out by end2018/early-2019,” it added.

As for Gamuda’s property segment, the research team pointed out that the group has exceeded its orderbook target.

“Earl ier target set in beginning FY17 was RM2.1 billion for the financial year and Gamuda had alluded to potentially surpassing this target at its 3QFY17 results briefing.

“The close of FY17 sawRM2.3 billion in sales (12 per cent yo-y, RM14 billion in 9MFY17 ). Unbilled sales was RM2 billion end-April 2017.

“For FY18, Gamuda had earlier set a presales target of RM3 billion; this may be reviewed. We expect this to be supported by a ful lyear contribution of Gamuda Gardens and the new launch of Twentyfive. Seven residences in end-2017,” it added.