“We continue to like Gamuda for its dominant position in the construction space in Malaysia which is bound to benefit from any pump priming initiatives. Risks to our call include: (i) no MRT3 project, (ii) wide resurgence of Covid-19, and (iii) a snap election," Kenang Research said
KUALA LUMPUR: Kenanga Investment Bank Research is retaining its outperform on Gamuda Bhd
with an unchanged target price of RM4.10, after its subsidiary was officially appointed to oversee the Penang Transport Master Plan (PTMP).
In a report yesterday, the research unit said the 60%-owned SRS Consortium is officially the project delivery partner (PDP) for PTMP after finally inking the master agreement with the Penang state government. Key disclosures include: (i) SRS’ bridging loan provision of RM1.3bil to Penang state and (ii) PDP fee of 5%–5.75%.
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