Higher target price for Gamuda, eyes RM3bil to RM4bil infra projects


RHB Research says it likes Gamuda for its exposure to the Mass Rapid Transit and Penang transport infrastructure.

“Gamuda is positioning to tender for the RM30bil-RM40bil KL-Singapore high-speed rail  (HSR) project now that the project has better tender time visibility, that is end-2017.

“SPLASH’s current book value is RM2.8bil. We believe that the eventual offer price should be closer to, if not on par with, one time price to book value (P/BV). The last rejected offer was at 0.1 time P/BV,” it said.

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