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Wednesday, June 28, 2017

六月专题:高股息系列#28-HEVEA(5095) 新势崛起的高股息公司! ~WSWT~

Author: 司马扬 | Publish date: Wed, 28 Jun 2017, 07:30 PM



业务简介
HEVEA主要业务为生产及销售刨花板产品particleboard以及涉及其下游业务,那就是准备组装(ready-to-assemble,RTA)。其业务分布如下图所示:



行业分类:木材工业

管理层/大股东
基本上全部Director都间接/直接持有HEVEA股份。



五年财政表现(RM'000)


买高股息公司一定要知道的数据
Dividend yield: 7.1sen/RM1.30 = 5.5%
Dividend policy: 30%
Dividend payout %:请看图
一年派息次数:4次 (自2016财政年)
派息风格:如果一两年前你说HEVEA是家高股息公司,一定会被人耻笑,因为2016年以前才派发不超过20%的派息率。2016年拟定30%派息率的政策,同年派发45%的派息率。不过,笔者认为未来几年HEVEA的派息率应该不会超过50%。

公司特点
1. 成为高股息公司的转折点
在六月份看了这么多家高股息公司,可以发现它们隐约都具备一些共同点,那就是除了稳定的净利之外,健康的现金流是不可缺少的。2012年HEVEA尚净负债RM111million,2015年中旬就转弯成为净现金公司,目前净现金RM76million。亦因为如此,HEVEA具备回馈股东股息的基本面,公司于2016年拟定30%派息率的政策,这其实也不能代表什么,只是管理层宣誓未来可以稳定派股息的讯号。

巧合的是,2012年是现任的Managing Director Yoong Hau Chun从其父亲Tenson Yoong接过领导棒子的年份。其父亲Tenson Yoong则退居幕后,扮演Alternate Director角色。或许年轻有为的Yoong Hau Chun(目前Mr.Yoong才41岁)带领的强劲管理层是HEVEA过去几年业绩大耀进的主要幕后推手。

2. 鹤立鸡群
相比起同行上市公司如EVERGREEN,MIECO等,HEVEA的营业额虽然还不如EVERGREEN,可是市值,赚幅,ROE都是同行中最高的。HEVEA过去两年的净利率都超过10%,远超出同行。

3. 扩张的节奏
公司表示2017年将会花RM48million作为资本开支(CAPEX)以扩张业务。这算是不小的数字,而且是更为快速的扩张节奏,因为去年才投入RM20million而已。

当中,RM33.5million将会投入RTA业务, 这将包括买入地皮以建造新厂房。公司也表示会在RTA业务推出电子商务行销管道。

至于RM4million则用于particleboard业务,比去年的RM8million来的少。值得一提的是,此业务的第三条生产线已在今年4月开始运作,产量可增10%。

剩余的RM10million则会投入于崭新的业务,那就是食用菌种植领域。而这也是令人意想不到的,因为HEVEA的木屑可用于种植菇类。未来会否成功还很难说,不过HEVEA可以想到利用看似无用的木屑来创造新的商机,的确令人期待。

4. 超"值"的warrant
目前HEVEA有个warrant,为HEVEA-WB,将在2020年3月到期。HEVEA-WB是2010年公司发行right issue时附带送出的。Warrant的转换价才RM0.25而已,对比公司目前的股价RM1.31,实在是差太多,所以warrant的最后持有人必定会以RM0.25转换为母股。

这对现有的股东就有些吃亏了,因为这会稀释公司的EPS,而增加股只为公司带来RM0.25/share的现金而已。目前还未转换成母股的warrant尚剩下28million units。如果这些母股全部转换成母股,现金会增加RM7.1million,share capital将增加至560.8million units,以过去4个季度的EPS为例,EPS就会降至15.09sen,P/E也会升至8.7。

适合收股息的指数(满分为5):5分
虽然HEVEA没有悠久的派息历史,可是HEVEA完全具备高股息的条件。因此,笔者认为HEVEA目前是值得收藏为高股息公司的初升段。虽然公司目前仍积极扩张业务而不会给予太高的派息率,不过相信这有助带动净利成长并推动股息逐步上升,这样一来你的cost based dividend yield也会跟着提高。

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有望获100亿新工程.金务大门庭若市

Author: Tan KW | Publish date: Wed, 28 Jun 2017, 06:41 PM
2017-06-28 17:11

(吉隆坡28日讯)金务大(GAMUDA,5398,主板建筑组)2017年首9个月业绩表现,大致符合市场预测,分析员认为,它为大马蓬勃建筑业领域的最佳代表建筑财团,预料未来12个月有望攫取100亿令吉新工程合约,普遍维持其评级及财测。

丰隆研究指出,金务大2017财政年首9个月营业额达22亿令吉(按年增26%),净利4亿9900万令吉(按年增5%)符合预测,占该行及市场全年预测74%及71%,维持其财测及评级。

丰隆研究认为,金务大的捷运二线工程按照计划进行、当局正在敲定捷运三线计划(圆圈路线),即内阁料在2018年中批准及于2019初推行,它将把捷运、轻快铁、单轨火车、电动火车等路线衔接起来。

根据较早时报道,捷运三线全程介于45至48公里之间,发展总值达500亿令吉。

金务大旗下产业业务于2017年首9个月的销售额为14亿令吉,较前期的5亿7500万令吉出现显著回弹。

目前未入账销售额为20亿令吉,或占2016财政年产业营业额的1.8倍的履盖率。

MIDF研究表示,金务大手握89亿令吉订单,惟该行还是担心槟城交通大蓝图(PTMP)进展。该行认为,该计划最好由联邦政府接管以加速推行,特别是由于政治问题,该行置疑该计划能否在2017财政年内开始进行。

大马投行指出,金务大管理层表示未来12个月有望攫取100亿令吉的新建筑工程合约,主要来自数项铁道工程计划,料包括轻快铁三线、东海岸铁道计划、马新高铁以及捷运三线计划等。目前持有建筑工程合约82亿令吉,是大马蓬勃建筑业的最佳代表建筑财团股。

放眼竞标更多一马房屋计划

肯纳格研究指出,金务大首次设立其预铸产品工厂,产能达100万公吨以支持其建筑业务。同时,该公司也放眼竞标更多的一马房屋及一马公务员房屋计划,以期在未来3年以其预铸产品技术兴建8000单位的房屋。

肯纳格研究表示,该公司产业业务未入账销售达20亿令吉,或等于未来3年盈利透明度。公司潜在风险,包括捷运地下铁第一线路工程进展延迟、第二线路计划出乎意料拖延、雪兰莪水供公司股权脱售持续不明确、较高生产成本及产业销售比预期低等。

艾毕斯研究指出,该公司欲脱售旗下水务业务——雪兰莪水供公司(SPLASH)股权的洽商,仍然尚未达敲定而持续不明朗。

无论如何,公司管理层认为,一旦落实股权脱售行动,不排除将脱售所得以特别股息回馈股东的可能性。艾毕斯将其2017年净利预测下调6.3%,惟维持2018年预测不变。

今日闭市,金务大涨3仙,收报5令吉48仙。



文章来源:星洲日报‧财经‧报道:李文龙‧2017.06.28

http://www.sinchew.com.my/node/1656903/%E6%9C%89%E6%9C%9B%E8%8E%B7100%E4%BA%BF%E6%96%B0%E5%B7%A5%E7%A8%8B%EF%BC%8E%E9%87%91%E5%8A%A1%E5%A4%A7%E9%97%A8%E5%BA%AD%E8%8B%A5%E5%B8%82

Gamuda (BUY) - Earnings Delivery on Schedule

Author:   |    Publish date: 


Results

  • Gamuda reported 3QFY17 results with revenue coming in at RM839m (-2% QoQ, +80% YoY) and earnings of RM171m (+3% QoQ, +12% YoY).
  • Cumulative 9M revenue summed to RM2.2bn (+26% YoY) while earnings amounted to RM499m (+5% YoY).

Deviation

  • 9M earnings made up 74% of our full year forecast (71% of consensus) which is within expectations.

Dividends

  • 2 nd interim dividend of 6 sen was declared, bringing the cumulative amount to 12 sen (unchanged YoY).

Highlights

  • MRT2 progressing as planned. MRT1 has been completed and will commence full operations in mid-July. For MRT2, 90% of the awards totalling RM29bn have been dished out. Progress rate on MRT2 is at 6% with mostly preliminary works being undertaken (e.g. utilities relocation, earthworks, foundations, excavation, ground treatment, retaining walls).
  • MRT3 being finalised. Project details on the MRT3 (i.e. Circle Line) is currently being finalised by SPAD. Cabinet approval is anticipated by mid-2018 with project rollout in early-2019. The circle line will integrate with other radial lines from the MRT, LRT, Monorail and KTM via its orbital alignment, commonly known as the “wheel and spokes” concept. As it will pass through densely populated areas with high buildings, a large portion of its alignment will be underground. This plays in Gamuda’s favour as it can undertake a higher degree of underground works given its experience with MRT1 and MRT2. Media reports have stated that the MRT3 could span 45-48km in length and cost RM50bn.
  • Strong recovery for property sales. Property sales in 3Q amounted to RM620m, bringing the YTD sum to RM1.4bn. This marks a strong recovery compared to RM575m in the same period last year. The Kundang township has been launched while Gamuda Gardens and Twentyfive.7 will be launched in 4Q. Unbilled sales stands at RM2bn, implying cover ratio of 1.8x on FY16 total property revenue.

Risks

  • Non approval or delays for Penang Transport Masterplan.

Forecasts

  • Unchanged as the results were inline.

Rating

Maintain BUY, TP: RM6.24
  • Gamuda’s earnings upcycle is poised to hit another round of multi-year highs in FY18 and FY19. It is also a key play to ride on the upcoming mega rail projects such as the LRT3, ECRL and HSR.

Valuation

  • While there are no changes to our estimates, our SOP based TP is raised from RM5.74 to RM6.24 as we roll forward our valuation horizon from CY17 to FY18 (July). This implies FY17-18 P/E of 22.3x and 19.3x respectively.
Source: Hong Leong Investment Bank Research - 28 Jun 2017

巴菲特公式:賣給自己一個小時閱讀時間,知識就會像「複利」一樣無限累積

Author: Tan KW | Publish date: Tue, 27 Jun 2017, 10:34 PM
2017/05/22

【我們為什麼挑選這篇文章】「閱讀」,造就了巴菲特。儘管他現在已經富可敵國,仍花 80% 的工作時間在閱讀上。他的合作夥伴查理芒格亦然,甚至被稱為「長腳的書」。

文中有個非常棒的概念,我特地在一開始就挑出來講:你最好的客戶是誰?永遠都是你自己。每天出售給自己一個小時來閱讀,讓自己變成一個更好的人。(責任編輯:陳君毅)

一個人能做到的最好的事情就是幫助另一個人了解更多。——查理·芒格

在睡前變得更聰明而不是醒來的時候。——查理·芒格

大部分人過一輩子也沒有真正變得更聰明。為什麼?他們就是沒有付出需要的努力。

回到家坐在沙發上,看電視然後渾渾噩噩直到睡覺時間,這很簡單。但卻不能幫助你變得更聰明。

當然第二天你就能在辦公室裡與同事討論昨晚的電視劇《廣告狂人》或者《冰與火之歌》。當然你也知道《指定倖存者》又演了什麼。但那些都不是知識的積累,而是使大腦麻木的鎮靜劑。

但如果你想,你也可以主動獲取知識。

事實上有一條簡單的法則,遵循它就可以讓你變得更聰明。說起來簡單但做到不容易。

它需要你付出很多努力。

我們就叫它巴菲特公式,是以沃倫·巴菲特及其在伯克希爾·哈撒韋公司的生意夥伴查理·芒格命名。這兩人是思想上最傑出的組合。他們也是學習的機器。

我知道,他能夠明白。我們是最棒的組合。——沃倫·巴菲特談到他的生意中伙伴和生活中的朋友查理·芒格時這樣說。

從他們身上我們可以學到很多。不是因為他們是億萬富翁所以他們變得很聰明。而一部分原因是因為他們聰明,所以他們才變成了億萬富翁。更重要的是,他們還在變得越來越聰明。因此,對於這個話題,他們可以告訴我們很多。

如何變得更聰明

閱讀。大量閱讀。

沃倫·巴菲特說,「我就坐在我的辦公室裡然後閱讀一整天」。

這意味著什麼?他估計他用 80% 的工作時間來閱讀和思考。

「你找不到任何一對商業搭檔在閱讀上花費的時間比我們兩個人多,」查理·芒格說。

當被問到如何變得更聰明,巴菲特曾舉起一疊文件並說「每星期讀 500 頁。這就是知識的累積,像獲得複利一樣」。

所有人都可以構建起我們的知識,但大部分人沒有付出努力。

曾有一個人接受了巴菲特的建議,現在他為這個傳奇的投資家工作,他就是托德·康姆斯。聽了巴菲特的建議後,他就開始記錄他讀的東西以及讀的頁數。

奧馬哈世界先驅報撰文:

不斷的尋找並閱讀生產性的材料最終變成了第二天性,即習慣。由於他開始做投資,他就要讀得更多,達到每天 600 頁,750 頁甚至 1000 頁。

康姆斯發現巴菲特公式很有用,閱讀帶來的信息給了他現在工作極大幫助——即尋找潛在的投資。

但如何閱讀也很重要,你需要一直保持辯證並不斷思考。你需要通過腦力工作來找到並堅持一個觀點。

在《Working Together: Why Great Partnerships Succeed》一書中,巴菲特向作者 Michael Eisner 說道:

我的工作本質上來說就是捕捉很多很多的事實和信息,並偶然從中知道是否需要為其採取行動。對於查理——他的孩子甚至稱他為一本長腳的書。

不斷學習

Eisner 繼續寫到:

也許這就是為什麼這兩人一致認為,他們從來不住在同一個城市或不在同一個辦公室會更好。因為他們可能會想一直聊天而沒有時間閱讀。芒格把閱讀描述為對於兩個管理者全世界最大的企業集團之一的人必要的繼續教育計劃的一部分。

「我認為沒有哪兩個生意夥伴在繼續學習上比我們做的更好,」他說,雖然用了一個虛擬的語氣其但確實真的如此認為。

「而且如果我們沒有一直學習,那我們的所創造的記錄就不會這麼好。而且我們都非常堅持地把一天中最好的時間用在閱讀上,這樣我們才能學習更多 ,這在商業搭檔中並不常見」。

事情不是根據你的想像運行


你認為他們就是整天坐在電腦前執迷於數字和指數?那你絕對錯了。

「不,」巴菲特說。「我們不讀別人的觀點。我們想要獲得事實,然後思考。」

但到了思考的部分,對於巴菲特和芒格來說,沒有任何人比跟自己的伙伴在一起思考更好。「查理遇到問題就一定要找到一個答案,」巴菲特說。「他有我見過最厲害的三十秒思維。如果我提出一個問題,三十秒之內他就能很好地抓住核心。他能夠立刻洞察事物」。

芒格認為他的知識儲備都是後天的,而不是天生的天才。而且他把這都歸功於學習。

「不管巴菲特還是我都沒聰明到不需要時間思考就做決定,」芒格曾這樣告訴一個記者。「我們能很快做出決定,但那是因為我們已經花費了很多時間安靜地坐下閱讀並思考以準備自己」。

如何找到閱讀的時間

找到閱讀時間比你想像中簡單。一個辦法是從一天中劃出一小時來給你自己。

巴菲特在其授權作傳的書《The Snowball》中的一段採訪,說了這樣一個故事:

查理,作為一個年輕律師,曾幾乎可以每小時掙 20 美元。他曾想,「誰是我最有價值的客戶?」

最終他認為是他自己。

所以他決定每天向自己出售一小時。他每天早上把時間用在這些工程項目和房地產交易上。每個人都應該這樣做,做自己的客戶,為別人工作以後,也向自己出售一小時。

想一想花費這一小時帶來的機會,這很重要。在一種情況下,你可以查看推特,讀讀網絡新聞,回復一些郵件同時假裝正在完成一個本該是你得主要任務的備忘錄。或者在另一種情況下,你可以把時間用於提升自己。短期內你可以更好地同時處理多項任務。長期內,學習新東西和提升自己的投資會得到更長久的回報。

「我一直都想提升我所在做的事情,」芒格說「即使這會使我任何一年的收入減少。而且我總是留出時間自我娛樂和自我提升」。

閱讀只是公式的一部分

僅僅閱讀是不夠的。查理·芒格提到:

我們大量閱讀。我認為智慧的人沒有不閱讀的。但這還不夠:你必須能夠抓住思想本質並付諸明智的行動。大部分人抓不住正確的思想本質或者不知道根據其做些什麼。

什麼意味你掌握了知識?在《如何閱讀一本書》中,作者 Mortimer Adle r 寫到:「一個說自己知道自己在想什麼的人,卻不能把其想法表達出來,往往說明他不知道自己在想什麼。」

你能否把你所知道的向別人介紹?試一下。選一個你認為已經掌握了其本質的想法,把它寫在一張紙上就像把其向別人介紹。

天生的還是培養的?

閱讀之外另一個變得更聰明的方法是認識並接觸那些敢於挑戰你的想法的人。

「通過不斷的閱讀把自己變成一個終身學習者;培養好奇心並努力使自己每天都更智慧一點點。」——查理·芒格

——

(本文經合作夥伴 36kr 授權轉載,並同意 TechOrange 編寫導讀與修訂標題,原文標題為《巴菲特公式:如何通過閱讀變得更聰明》;)

https://buzzorange.com/techorange/2017/05/22/reading-makes-u-good/

Advancecon Holdings - Unearthing Potential

Author: kiasutrader | Publish date: Wed, 28 Jun 2017, 09:31 AM

Via its IPO, Advancecon Holdings Bhd (ADVCON) will be raising RM56.7m with a market capitalisation of RM253m. Current outstanding order-book is at healthy level of RM572m providing visibility for the next 2 years. We expect more contract wins from the infrastructure space as ADVCON is targeting larger contracts of above RM50m and mobilizing more machineries into East Malaysia to tap opportunities there starting with the Pan Borneo project. SUBSCRIBE with a TP of RM0.85 based on 10x FY18 PER.

IPO to raise RM56.7m based on 90m new shares at IPO price of RM0.63. The enlarged share capital of 402.1m shares indicates a market capitalization of RM253.3m. Utilization of proceeds is mainly on machinery capex, construction of a new workshop, debt repayments and working capital requirements. Major shareholders include Dato Phum Ang Kia (23.7%), Lim Swee Chai (12.7%) and Pham Soon Kok (7.3%).

Earthworks specialist with reputable clients. Being 27 years in the earthworks space, ADVCON has a proven track record of hundreds of completed jobs under their belt. Most jobs accepted by ADVCON for the past 3 years were from recommendations/invitations except for the WCE package and Kota Puteri project (Rawang) whereby it was won through open tender. ADVCON has gained a set of reputable clients as their recurring clients namely SPSETIA and ECOWLD along the years. While we believe that the execution of earth and road works is relatively simpler compared to building works, we note that it is still not easy to breach the barrier to be a specialized earthworks contractor capable to take on large projects given the amount of CAPEX required. Due to ADVCON’s experienced management team coupled with the extensive range of machineries, ADVCON has emerged as one of the biggest earthworks contractors within this relatively fragmented earthworks space in Malaysia.

Less affected by slowdown in Malaysian property market. We believe that ADVCON which specializes in earthworks are less affected by the slowdown in the property development space as they could still actively bid within the infrastructure space with clearer replenishment visibility with impending jobs such as HSR, ECRL, SUKE, DASH and Pan Borneo.

Earnings forecast. We are forecasting FY17-18E CNPs of RM32.1- 35.0m on the back of: (i) outstanding order-book of RM572m as of 19th May 2017, and (ii) order-book replenishment target of RM250-300m for FY17-18E with a remainder of RM216m to be achieved for the remainder of FY17. We highlight that ADVCON’s FY17-18E net margins of 11% and 2 year fwd CAGR earnings growth of 15% is superior against peers average FY17-18E net margins of 9.6% and 2 year CAGR growth of 9% respectively. That said, we note that our expected FY17-18E net gearing of 0.3x-0.2x remains inferior to peers.

SUBSCRIBE with a TP of RM0.85 based on 10x FY18 PER. Despite the slight discount over peers’ average PER of 11x, we believe our applied 10.0x PER valuation is fair given the ADVCON’s market cap which remains much smaller against peers coupled with their higher net gearing. Nonetheless, we note that their above average PAT margins of 11% along with FY17-18E earnings growth of 21%-9% (implying 2-year Fwd. CAGR of 15%) provides a buffer for their shortcomings. We like to highlight that ADVCON IPO price of RM0.63 implies Fwd. FY18 PER of 7.2x – which is a very attractive level versus peers’ current trading range of 8.9-12.5x.

Source: Kenanga Research - 28 Jun 2017

Advancecon - Specialist Earthworks Partner

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Advancecon Holdings Bhd (Advancecon) is principally involved in the one-stop provision of integrated earthworks and civil engineering services. Earthwork focuses on both residential and commercial property development projects as well as infrastructure projects while its civil engineering services largely emphasise on the construction of infrastructure. The group is also involved in the provision of comprehensive support services such as sale of construction materials, hiring of machinery and ad hoc general construction services. In April 2013, its property investment segment commenced operations. Going forward, Advancecon will be focusing on bidding for earthworks and civil engineering projects with contract value exceeding RM50m, targeting larger-scale construction projects which require a combination of earthworks and civil engineering services. We see healthy order book replenishments of c. RM200m per year for the next two years. Our fair value is RM0.78 based on a c. 9x PE multiple to its FY18 EPS of 8.7 sen. The IPO is expected to raise approximately RM56.7m from the issuance of 90.0m new shares, with c. 52.3% of the proceeds to be utilized as capital expenditure for purchase of new construction machinery and equipment as well as set up of well-equipped workshop, in tandem with its strategy of bidding for more large-scale projects.
  • Key growth drivers. Advancecon’s growth will be underpinned by i) government-led initiatives and spending, ii) favorable interest rate environment, iii) sustained economic growth, and iv) steady population growth, sustaining the earthworks and civil engineering market’s 15.3% CAGR from 2017 to 2021.
  • Competitive strengths. Advancecon’s strengths bank on its i) reputable track record of capability, quality and timeliness in the past 27 years, earning it recurring customers and new customers via referrals ii) experienced key management, enabling viable execution of projects and provision of pragmatic alternative when in need, iii) owning sizeable fleet of machinery that requires intensive capital investment, hence suggesting relatively high barrier to entry into the niche market, and iv) sustaining quality standards through enforcement of stringent health, safety and environment (HSE) policy, besides implementation of accredited Quality Management System (OMS) in compliance with ISO 9001:2008.
  • Key risks. Key downside risks, among others, include i) competition in the construction industry, ii) dependency on certain major clients, iii) impact of fluctuations in the prices of raw materials, iv) dependency on general works.

Valuation

P/E valuation approach. Advancecon‘s fair value is derived based on a price earnings methodology. Our fair value is RM0.78, which is pegged at c. 9x PER which is within our valuations for small-mid cap construction players. Advancecon is a specialist in earthworks and hence has a healthy PBT margin averaging c. 15% currently. We estimate the group’s earnings to growth at CAGR of c. 13%, with average job replenishment rate of c. RM200m p.a. With the continued infrastructure spending in the country, we believe that the job flow for the Group will be good in the next few years. To recap, among the key infrastructure jobs that we expect to be awarded in the near term include East Coast Rail Link (c. RM55bn), LRT3 (c. RM10bn), Kuala Lumpur-Singapore High Speed Rail (c. RM70bn) and MRT3 (c. RM50bn). Other infrastructure jobs include BRT lines (c. RM2.0bn), Gemas-JB Double Tracking (c. RM9bn) and Pan Borneo Sabah (c. RM13bn).
Source: PublicInvest Research - 28 Jun 2017

GAMUDA - Strong Construction Profit

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In 3QFY17, Gamuda registered a net profit of RM170.9m (+2.8% QoQ, +11.9% YoY), which was within our and consensus expectations. YTD, the group’s net profit of RM499.3m constituted c.70% of both our and consensus full year estimates. As indicated earlier, the 3Q performance was stronger as expected due to construction billings which offset declines in property contributions. For 9MFY17, Gamuda’s construction earnings rose by c.64% while properties declined 18% as concessions stayed flat. Outstanding orderbook is estimated to be at c.RM8.2bn. Near term, the Group is eyeing projects such as LRT3, Gemas-JB double tracking and Pan Borneo Sabah. As for the long-drawn negotiations on the SPLASH disposal, we understand that a deal is delayed yet again and there’s no certainty that it can be concluded by end-2017. Maintain Outperform with an unchanged RM6.20 TP. We still like Gamuda and expect earnings to pick up pace from FY17 and to continue to benefit from the large infrastructure projects expected to be rolled out over the next 2-3 years.
  • KVMRT1 100% completed. KVMRT1’s phase 2 is now 100% completed and is due to be opened for service in July, which is slightly ahead of schedule. The successful implementation will give the Group an edge in bidding for the other rail projects in the country, in our view. Outstanding orderbook is estimated to be at RM8.2bn, from jobs such as KVMRT2 underground and Pan Borneo Sarawak Highway. In the next 12 months, it expects to add jobs worth c.RM10bn by participating in projects such as LRT3, Gemas-JB double track project, Pan Borneo (Sabah portion) and KVMRT3. In the longer term, with its expertise in railway construction, it could participate in projects such as the High Speed Rail and expects Penang Transport Masterplan (PTMP) to start contributing to its orderbook build-up. To recap, the LoA for PTMP’s PDP agreement has been extended to August 2017.
  • Better property sales. Despite weaker property earnings at RM45m (- 8% YoY, -12% QoQ), its presales is expected to be stronger in 4QFY17, driven by new township launches locally. In 3QFY17, it secured RM620m, bringing sales YTD to RM1.4bn or c.66% of FY17 sales target of c.RM2.1bn. We understand that the Kundang township has been launched and the other two i.e. Gamuda Gardens and Twentyfive.7 to be launched by end-2017. As for overseas sales performance, Vietnam remains strong while Singapore is weaker than expected. Given recent encouraging bookings received, Gamuda could raise FY18 sales target to RM3bn. Also, it could also potentially surpass FY17 sales target. All told, we keep our earnings estimates unchanged for now.
Source: PublicInvest Research - 28 Jun 2017