Maintain Buy. Gamuda's 2QFY12 results, due on 28 March, should pleasantly surprise on rising property contributions from record sales, as well as land sale gains in Vietnam. We raise our FY12-14 net profit forecasts by 1-3% p.a.. There is however no change to our RM4.10 RNAV-based TP. The KVMRT-SBK tunnelling and Gemas-JB double track rail works, both to be awarded by mid-2012, will be the catalysts that drive the share price. Both would provide upside to our earnings forecasts. Our TP only reflects the KVMRT-SBK tunnelling works.


Maybank Research 13 March 2012

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