KUALA LUMPUR (June 23): Gamuda Bhd saw its net profit decline 9.83% to RM160.43 million or 6.81 sen per share for the third financial quarter ended April 30, 2015 (3QFY15), from RM177.92 million or 7.74 sen per share a year ago, on completion of the electrified double tracking railway project and a soft property market.

Revenue fell 12.63% to RM553.78 million in 3QFY15, from RM633.83 million in 3QFY14.

The group also declared a second interim dividend of 6 sen per share for the financial year ending July 31, 2015 (FY15), payable on July 29, 2015.

For the nine months period (9MFY15), its net profit grew 2.91% to RM528.46 million or 22.58 sen per share, from RM513.51 million or 22.39 sen per share in 9MFY14; while revenue rose 8.54% to RM1.78 billion, from RM1.64 billion.

In a filing with Bursa Malaysia today, Gamuda (fundamental: 2.2; valuation: 1.1) said the electrified double-tracking railway project was completed in November last year.

The group also noted that while the Malaysian property market has softened, its sales of properties in Vietnam has improved in 3QFY15.

Going forward, Gamuda expects a good performance this year from on-going construction projects, substantial unbilled sales of the property division, and steady earnings from the water and expressway concessions division.

Gamuda said work on the Mass Rapid Transit (MRT) Line 1 at the end of May 2015 was 64% completed. "The installation of rail tracks is progressing, with 60% progress achieved."

The project is on target for Phase 1 completion in December 2016 and full completion by July 2017, with no significant cost overruns so far, the group added.

Four MRT electric trains are undergoing testing at the test track in Sg Buloh Depot and by mid-July, a total of 10 electric trains will be delivered to the Sg Buloh Depot, the company said.

Gamuda said the underground works package has achieved a certified progress of 78% at the end of May 2015.

Gamuda also said it will be launching two new projects by the end of 2015, namely HighPark Suites at Kelana Jaya and Bukit Bantayan in Kota Kinabalu, Sabah, with a combined gross development value of RM1.3 billion.

Projects in the planning stages include Seri Serai and Serai Springs township developments located at the intersections of the North-South Highway, Guthrie Corridor and the Kuala Lumpur–Kuala Selangor Expressway (LATAR); 1,530 acres of development land located opposite the Cyberjaya or Putrajaya interchange along Expressway Lingkaran Tengah (Elite Highway); and 257 acres of land which is adjacent to the Kota Kemuning township, the group said.

Gamuda said it is also preparing to launch its maiden project of a high-rise development in Melbourne, Australia, with a GDV of RM400 million.

Gamuda shares closed four sen or 0.8% lower at RM4.94 today, with a market capitalisation of RM11.98 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)