gamuda

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KLSE - Main Board - Construction

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Gamuda

The Star 20/3/00 - Analysts are bullish over the company's prospects in view of its earnings potential chiefly from expressway toll collections, construction, property development and a water privatisation project. OCBC Investment research analyst Lian Wah Seng said Gamuda is anticipated to have compounded annual growth rate of about 30% for the next three years. After the bonus issue. Gamuda's share capital is about 645 million shares. Gamuda has yet to proceed with its Sprint Package 3 and the Kuala Lumpur Elevated Expressway projects. Both projects are worth about RM2.4bil. Toll collections from highways operated by Litrak and Kesas Sdn Bhd were expected to contribute about 31% of the group's pre-tax profit this year. Construction division is expected to contribute 50%. Property development division is expected to contribute about 10% while the rest of the income will be derived from the group's water privatisation project, quarrying and manufacturing divisions, said Lian. The construction of the RM2.1bil Sungai Selangor Water Supply Scheme Phase 3 water project has finally begun while the construction of the Sprint Expressway is six months ahead of schedule. Litrak is also enjoying the country's economic rebound with traffic volume on its highway registering growth of more than 17%. The company's two property projects in Kota Kamuning and Sungai Buloh will push its property earnings to above RM30mil. Gamuda's 30% stake in the Sungai Selangor Water Supply Scheme should be worth at least RM386mil when completed. The first phase of the water project will be completed by end-2001. The first phase of Gamuda's Valencia property development project adjacent to Sierramas in Sungai Buloh is expected to be launched by year end. The company expects a groww development value of RM600mil to RM700mil from the sale of residential properties. Its Kota Kamuning project is still enjoying robust sales with RM160mil worth of property sold over the last six months. All its recent launches have achieved a take-up rate of more than 95%. Gamuda remained one of the few construction companies with a low gearing ratio of 0.3 times. Its interests in the LDP and Sprint Expressways are bonuses, as both projects have relatively low level of borrowings. With contributions from LDP, Kesas, Sprint, Sungai Selangor Water Supply Phase 3 in hand, a normalised average growth rate of 10% in earnings over the next few years is attainable. Gamuda registerd a group interim pre-tax profit of RM65.5 mil for the first half of year ended July 31, 1999 down 8.2% frm RM 71.3mil in the same period in 1998. Turnover dropped 38% to RM288.7mil compared wtih RM465.7mil previously. The lower profit and turnover were attributed to the completion of the LDP and a delay in the commencement of construction works on the Sprint Expressway.

Feb 00 - bonus issue - passed ex-date