KUALA LUMPUR: The market reacted positively to the latest financial results from Gamuda Bhd and its shares were up 3% in early trade Monday.
The counter, one of the top gainers on Bursa Malaysia, added 3.09%, or 11 sen to RM3.67 with 229,600 shares traded
For the fourth quarter ended July 31, Gamuda returned to the black with a net profit of RM184.95mil against a net loss of RM103.64mil in the corresponding period a year ago.
The return to profitability was mainly due to the absence of a one-off loss arising from the disposal of its 40%-owned associate Syarikat Pengeluar Air Selangor Holdings Bhd (Splash) and a one-off discount on its 80%-owned subsidiary Gamuda Water Sdn Bhd’s trade receivables last year.
Revenue for the quarter rose 23.7% to RM1.5bil from RM1.21bil a year ago.
For the full financial year, Gamuda posted a net profit of RM706.11mil, 33% higher than the RM530.18mil in the same period last year, mainly driven by its property division, Gamuda Land Bhd.
The group’s revenue was also higher at RM4.57bil compared with RM4.22bil last year.
Affin Hwang Capital Research said Gamuda’s FY19 result was within the house’s expectations but above market’s.
It said the core net profit fell 13% year-on-year to RM720mil in FY19 due to lower construction and concession core earnings.
Gamuda will take up a50% stake in Australian-based Martinus Rail (MR)to speed-track its expansion into the Australian infrastructure construction market.
“Good prospects to expand its orderbook of RM9.2bil currently with potential bids for projects in Malaysia and Australia.”
“Gamuda remains our top large-cap sector ‘buy’ with raised RNAV-based target price of RM4.30, ” Affin said.
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