GAMUDA on track to a good financial year
>> Friday, June 24, 2011
FY30/4/2011
Financial Result
Compare to 3Q10, company revenue up 21% from RM511.2m to RM621.2m recorded for 3Q11. PBT has also increase 55% from RM101.8m to RM158.4m. The increase in profit before taxation for current quarter resulted by higher contributed from all divisions.
For 9 months period, company recorded revenue PBT of RM1862.6 and RM393.4 respectively.
Engineering and Construction division contribute 70% of company's revenue, 26% of PBT
Property Development division contribute 25% of revenue, 28% of PBT
Water and Expressway division through its associate company, contribute 46% of PBT
As we can see, water and expressway division are the goose that can lay eggs for the company. Its essential for GAMUDA to retained them.
Technical Outlook
Gamuda good financial result need some time to reflect in its share price. Immediate resistance is RM3.84, then RM3.98. MACD show some positive signal.
Stock Valuation
GAMUDA close at RM3.75 today(24/6/2011). Base on EPS(ttm) of RM0.184, its trading at 20.4x. As a bluechip construction company, i think the price is fairly valued.
Overall
Prospect for the company is very promising in the medium term. Couple of projects in each particular division will keep them busy. With a good quarter result announced, it'll soon reflect on its share price. Its an opportunity to ACCUMULATE while its still steady. Read more...
