KUALA LUMPUR (Sept 29): TA Securities Research has maintained its “buy” rating on Gamuda Bhd at RM4.31 with a higher target price of RM5.19 (from RM5.03) based on sum of parts valuation.
The research house also increased its earnings forecasts for Gamuda by 22.4% for the financial year 2024 (FY2024) and by 15.6% for FY2025.
In a note on Friday, TA Securities said Gamuda’s FY2023 core profit of RM804.7 million came in above expectations but within the consensus forecast, accounting for 114.3% of house’s full-year estimates and 99.4% of consensus.
It said the positive variance was mainly attributed to stronger-than-expected profit contributions from the construction division.
TA Securities said given the better-than-expected results, adjustments are made to reflect higher revenue recognition assumptions for certain ongoing projects as well as higher property sales for FY2024 and FY2025.
“Meanwhile, we introduce FY2026 numbers with a projected net profit of RM1.06 billion, representing an earnings growth of 8.5%.
“Generally, the group is expected to deliver another decent quarter ahead, underpinned by its record high outstanding order book and properties unbilled sales,” it said.
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Source: EdgeProp.my
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