KUALA LUMPUR: Maybank Kim Eng Research has maintained Gamuda Bhd's financial year 2012 net profit growth of 26 per cent amid good earnings visibility from a strong outstanding construction order book, record unbilled property sales and recurring earnings from its toll and water concessions.

Maybank Kim Eng in a research note today said the construction company was on track to post record earnings this year.

"Growth will be underpinned by an uptick in construction margins as the northern portion of the double-track rail project progresses beyond the 80 per cent completion mark," it said.

Going forward, the research house said Gamuda would continue to eye the final link of the double-track rail project (Gemas-Johor Baru) worth RM8 billion and the Klang Valley's mass rapid transit package two and three as major construction awards were expected to resume after the general elections.

The MRT projects, estimated to be worth at least RM30 billion, is expected to open for tender after federal government's approval in mid-2013.

Despite these positives factors, it said Gamuda share price may be capped in the near-term by election uncertainties.

In addition, it said there could be a downside risks for
construction-related stocks generally depending on the outcome of the election.

Maybank Kim Eng has maintained a 'buy' call on Gamuda with an unchanged target price of RM4.10 per share. -- BERNAMA