Manageable terms. The KVMRT SBK PDP terms are well structured, giving the PDP reasonable room to manage the project delivery, in our view. We estimate that the PDP fee attributable to Gamuda works out to be 13sen/share, to be recognised over 5 years. We raise our net profit forecasts by 12% (FY12) and 17% (FY13) after imputing higher margins for existing construction and property projects, and the PDP fee from FY13. We maintain our RM4.10 RNAV-based target price, which has incorporated the KVMRT SBK PDP and tunnelling works.

Maybank Research 13 Feb 2012

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