Gamuda's 4Q net profit falls 25.4%

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KUALA LUMPUR (Sept 28): Gamuda Bhd's net profit declined 25.4% to RM153.68 million in the fourth quarter ended July 31, 2015 (4QFY15) from RM205.89 million a year ago, mainly due to the completion of the electrified-double tracking railway.

According to a filing to Bursa Malaysia today, the construction company said its revenue rose 5.28% to RM623.27 million from RM592 million a year ago.

The earnings per share (EPS) was 6.39 sen versus 8.89 sen in 4QFY14.

For the full year of FY15, Gamuda's net profit fell 5.2% to RM682.1 million from RM719.4 million. Annual EPS decreased to 28.94 sen from 31.29 sen.

Revenue was at RM2.4 billion, a slight increase of 7.62% compared with RM2.23 billion in FY14.

Gamuda attributed the increase in revenue to higher contributions from Kesas Sdn Bhd as a result of the additional stake in the concessionaire of Shah Alam Expressway.

Moving forward, the group anticipates a good performance next calendar year from ongoing construction projects and steady earnings from the water and expressway concessions division.

"However, with the softening residential and non-residential property market, weaker growth for the property division is expected over the coming quarters," it added.

Gamuda's share price has fallen from a peak of RM5.15 in May to a 28-month low of RM3.85 last month. The stock closed at RM4.50 today, up one sen, with a market capitalisation of RM10.83 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.)