Gamuda Berhad has reported another record year for earnings in FY24, with core net profit rising 5.4% to RM907.3 million. This performance was slightly below market expectations, attributed to foreign exchange impacts from the strengthening Ringgit against the Vietnamese Dong and the Australian Dollar. However, stock broking houses from RHB, Maybank, and MIDF have maintained a BUY call on Gamuda, with target prices ranging from RM8.70 to RM9.79, citing strong growth prospects driven by its construction and property divisions. The company's ability to secure substantial projects both domestically and internationally has contributed to its robust order book, which is expected to reach RM35 billion by the end of CY2024.

Analysts are particularly optimistic about Gamuda's upcoming project pipeline, with expectations of RM10-15 billion in new projects over the next two quarters. These projects include the Upper Padas Hydro project, the Penang Light Rail Transit (LRT), and several renewable energy jobs in Australia. The company's construction revenue grew significantly by 71.4% to RM10.6 billion in FY24, with 84.5% of that stemming from overseas projects. Although construction net profit remained flattish at RM501.3 million due to lower margins from international projects, margins are expected to improve as more high-margin local projects come on board in FY25.

Gamuda's property division also saw impressive growth, with sales hitting RM5 billion in FY24, up 22% year-on-year. The company is setting a higher target of RM6 billion in property sales for FY25, supported by two new quick turnaround projects in Ho Chi Minh City, Vietnam. The division's net profit surged by 30.5% to RM410.8 million, although margins were slightly affected due to the completion of its high-margin Celadon City project. The unbilled property sales stood at RM7.7 billion by the end of July 2024.

Looking ahead, Gamuda is expected to maintain its dividend payout, raising the forecast to 20 sen per share in FY25, up from 16 sen in FY24. The company also announced a proposed 1-for-1 bonus issue, which would double its share base, increasing trading liquidity. The bonus issue is expected to be completed by the fourth quarter of CY2024.