GAMUDA - Growing From Strength-to-Strength (OSK)

We recently hosted Gamuda at the OSK-DMG ASEAN Corporate Day. Its recent strong margins appear to be sustainable on the steel prices locked in and more aggressive profit recognition for the EDT. We remain confident of Gamuda’s chances of bagging the MRT tunnelling works given its 7.5% pricing advantage and tunnelling track record. It is also in the running for the Gemas-JB EDT job that could be awarded by mid-year. We are positive on Gamuda potentially posting another record year for earnings and significantly replenishing its orderbook. Maintain BUY, with a higher FV of RM4.46.