§
Gamuda
(Results Review): 3QFY12:
Results met expectations (Maintain HOLD, TP: RM3.53) [download
report]
Gamuda’s 9MFY12 results came in within both our and
consensus expectations, well on track to beat last FY11’s net profit of
RM425.4m. Despite its property earnings having gone up since the start of FY12,
the annualised pretax profit growth in the segment has slid to 51% in 3QFY12
from 138% in 1QFY12, possibly due to weakening buyer sentiment amid global
economic uncertainty. We think that Gamuda would mitigate any further downside
risk faced by its property division via faster profit recognition from works on
the 81%-completed Northern double-tracking project, which is expected to peak
about 2 quarters from now. Maintain HOLD with target price at RM3.53 based on
our sum-of-parts valuation.
We resume coverage on UMW Holdings with a Hold call and target price of
RM9.70 based on the sum-of-parts valuation. The Group’s automotive division
will remain the key revenue generator as it continues to dominate both the
national and non-national car segment. In addition, the O&G division
managed to return to black in 1Q12, recording a PBT of RM29.9m supported by
additional contributions from Naga 3 and Hakuryu 5 rigs and higher revenue from
oilfield products and services. We expect stable earnings for UMW’s equipment
and manufacturing & engineering divisions.
Other reports
Malaysian news
§ Axiata: Celcom in tie-up with Transnasional
§ UMW
Holdings: Unit to acquire another jack-up drilling rig
§ IJM Corp: To appeal with revised plan for highway
extension
§ Parkson: Investing RM48m in
5 stores in Indonesia
§ KLCC
Property: Management to explore KLCCP REIT
§ Mah
Sing: Interested in RRI land
§ Muhibbah: Surprised by
CIMB move
§ Perdana
Petroleum: Wins RM86m job
§ TH Heavy Engineering: Expects to boost its order book
§ Crest
Builder: To develop MRB land
§ Sumatec:
Halim to acquire Sumatec’s troubled assets
§ Building
Materials: Government to probe steel wire rods import
§ Construction: MRT Corp
awards 2 more contracts
§ Oil
& Gas: Petronas to buy Progress Energy for RM17bn
Global news
§ US
§ US
§ Europe : Hollande
withholds giving full endorsement of the growth pact
§ Europe : IMF
may consider Greek loan measures changes after visit
§ Europe : Euro-area
confidence slumps, German unemployment rises
§ South
Korea : Government
announces bigger fiscal response to Europe
growth threat
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