In recent property deals, the engineering, property development and infrastructure company invested over RM2bil on three townships as well as a further RM2bil infrastructure spend on interchanges and roads.
Gamuda would spend a further RM3bil to RM3.5bil next year, bringing the total investments to about RM7.5bil, its group managing director Datuk Lin Yun Ling said at a press conference after the company’s AGM and EGM yesterday.
“A gearing of about 0.7 times of our equity is something we are comfortable with,” Lin said, adding that Gamuda did not normally have a set capital expenditure to go by on a 12-monthly basis.
“By and large, the construction division doesn’t require very much capex apart from investments in plant and machinery,” he said.
He said the outlook for the financial year 2016 looked positive as the Government was embarking on many railway projects.
This was a good time to make capital investments in infrastructure so as to mitigate the slowdown in the economy, he said, as these projects had multiplier effects that were beneficial. “They create a lot of jobs as well as consumer demand, and that will help with economic growth,” Lin said.
Gamuda is currently in seven countries – Malaysia, Vietnam, Singapore, Taiwan, India, Australia and Qatar – and its plans are to deepen investments in those countries rather than explore new territories.
Meanwhile, the tender for the tunnelling job of the Klang Valley mass rapid transit line 2 will be ending late January. This comes eight months after opening its pre-qualifying process for the international open tender in May.
“Construction will begin before May,” Lin said, adding that the first two packages for the other viaducts were already released.
The 52.2km urban rail artery would be known as the Sungai Buloh-Serdang-Putrajaya (SSP) line, with its underground portion measuring some 10km,” he said.
At Monday’s close, shares of Gamuda stood at RM4.70, up 13 sen from last Friday.
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