Gamuda Bhd will accelerate jobs locally in the coming quarters of financial year 2024/25 stemming from its core business segments namely construction especially data centre and renewable energy projects, cloud and artificial intelligence (AI) infrastructure, as well as property development, according to Kenanga Investment Bank Bhd (Kenanga Research). Note: FY2024/25 refers to Financial year ending 31 July 2025
Gamuda expects three new growth drivers over the next three years, including Energy Transition (ET) through data centres and renewables, cloud digital and AI from its new ventures and quick turnaround projects (QTP) in the property segment especially the Vietnamese market.
Kenanga Research has maintained the OUTPERFORM call for Gamuda and the target price of RM10.80, offering a premium of RM1.05 over current market pricing.
As at 12:30am Dec 13, Gamuda traded at RM9.75. (Stock updates from Bursa Malaysia)
Gamuda's first quarter FY2024/25 net profit of RM205.4 million (RM205,393,000) came in at 15% of Kenanga's estimate was deemed within expectation in view of stronger earnings in the coming quarters. The builder declared a first interim dividend per share of 5.0 sen in the quarter under review against 6.0 sen paid out in the corresponding quarter in the previous financial year. Its 1-for-1 bonus shares will be listed and quoted on Dec 23, also the same day where Gamuda's inclusion into the FBM KLCI takes effect.
Recently, Bursa Malaysia announced that Gamuda and 99 Speed Mart Retail Holdings Bhd have been included as constituents of FTSE Bursa Malaysia KLCI (FBM KLCI) which tracks the aggregate market movement of 30 largest companies on Bursa's Main board by market capitalisation. (FTSE: Financial Times Stock Exchange)
Gamuda's revenue in the first financial quarter ended 31 October 2024 rew substantially by 47% year-on-year to nearly RM4.14 billion (RM4,136,094,000), from over RM2.80 billion recorded in the corresponding quarter a year ago, owing to higher overseas projects billings by Gamuda Engineering (GE), especially from Australia. Though, quarterly net profit expanded by a smaller percentage of 5% to RM205.4m
