Gamuda earnings to hit record: OSK Research

KUALA LUMPUR, Dec 27 (Bernama) -- Gamuda Bhd's earnings are set to hit record highs over the next two years, with the first Klang Valley Mass Rapid Transit (KV MRT) project being a major boon for them, says a research house.

The infrastructure and property developer, which has operations in Asia and the Middle East Region, is likely to add potential jobs such as the remaining two MRT lines, the Gemas-Johor Bahru double track as well as the Langat 2 water treatment plant.

OSK Research Sdn Bhd, in its research note said these potential jobs will add to its existing RM4.5 billion strong order book, which in turn will spur interest in the stock.

On the elevated portions of the MRT project, the research house said works at all the viaduct packages were largely progressing on schedule.

To date, 54 packages worth more than RM20 billion have been awarded, while the remaining 32 packages totalling RM2 billion to RM2.5 billion will be handed out by end first quarter in 2013.

The company is also expecting at least one of the two remaining KV MRT lines to be awarded by end of 2013, it said.

Apart from that, more news are expected relating to the RM8 billion Gemas-Johor Bahru double tracking project for which Gamuda will be partnering China Railway Construction in a joint bid.

OSK has retained a Buy call with a fair value of RM4.90.