GAMUDA BHD [] shares advanced on Monday, Sept 27 after Hwang DBS Vickers Research kept the company high on its conviction pick and raised the target price to RM4.40.
At 9.40am, Gamuda gained six sen to RM3.90 with 518,400 shares traded.
In its report on Monday, Sept 27, it raised the target price to RM4.40 after factoring in the recent purchase of land along Jalan Pudu (RM600m gross development value), where Gamuda plans to build shop offices and service apartments.
At 19 times one-year forward PE and 2.1 times price/book value, valuations do not seem cheap, but they are at mean levels.
"We expect valuations to at least test 1SD above mean and for it to trade at premium valuations to its peers should it be awarded the mass rapid transit project," it said.
Hwang DBS Vickers Research said in the two-months leading to the award of its RM12.5bn double tracking project, it traded at average 1-year forward PE of 29 times and peaked at 39 times a month later.
Gamuda's investability will also gain traction having replaced Tanjong in the 30-stock FBM KLCI.
Written by Surin Murugiah
The Edge Malaysia
The world-renowned teaching and research institution might be involved in healthcare in partnership with a Malaysian-listed company, sources say
ReplyDeleteThe world-renowned teaching and research institution Johns Hopkins may make its way into Malaysia in a big way.
Sources said that Johns Hopkins might be involved in the healthcare field in partnership with a local listed company.
Information of its exact field of involvement remained sketchy, but sources said that a piece of land in Selangor had been identified for the development of a medical city.
Business Times understands that the investment in this initiative could be to the tune of RM1.8 billion