Gamuda up on dividend, 1Q profit

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KUALA LUMPUR (Dec 18): Gamuda Bhd rose as much as 10 sen or 2% after the builder and property developer reported higher first quarter net profit at RM203.02 million from a year earlier. The company also declared a dividend to reward shareholders.

As at 10:15am, the stock changed hands at RM4.84 with more than 300,000 shares traded. Gamuda shares had earlier reached their highest so far today at RM4.85.

On Friday, Gamuda reported a higher net profit of RM203.02 million in the first quarter ended Oct 31, 2017 (1QFY18) from RM162.15 million a year earlier. Revenue rose to RM771.82 million from RM504.88 million.

The group declared a dividend of six sen per share. The dividend's ex and payment dates are on Jan 3 and 25, 2018 respectively, the company said.

Today, CIMB Investment Bank Bhd analyst Sharizan Rosely said Gamuda's 1QFY18 core net profit was broadly in line with expectations, making up 27% and 28% of CIMB and consensus's full-year forecast respectively.

"The stock has fallen 12% in the past three months. We feel this presents a good buying opportunity ahead of potential contract flows in 1HFY18," Sharizan said.