Friday 29 Mar 2024
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KUALA LUMPUR (Sept 29): Hong Leong IB Research has maintained its “Buy” rating on Gamuda Bhd with  a target price ofd RM5.01 and said Gamuda’s FY15 earnings of RM682 million was within expectations.

In a note today, the research house said work on MRT Line 2 to being next year, MMC-Gamuda the top contender for tunneling works (RM12 billion).

The research house said the PDP role for Penang Transport Masterplan to be a longer term catalyst.

“Property sales may have bottomed out with FY15 numbers down 33% year-on-year but above our estimates.

“Proposes 1 for 6 rights issue of warrants at pricing of RM0.25 and indicative exercise of RM4.65.

“Maintain Buy, RM5.01 target price. Gamuda offers catalysts in the short term (MRT 2 and water saga resolution and long term (Penang),” it said.

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