Mega projects likely to boost Gamuda

The HSR and MRT3 will be significant projects to drive the economy from 2021 and the research house expects Gamuda to have a role in both.

KUALA LUMPUR: A possible revival of mega projects like the High-Speed Rail (HSR) and Mass Rapid Transit Line 3 (MRT3) is likely to be a boost for Gamuda Bhd, AllianceDBS Research says as it upped its sum of parts (SOP) derived target price to RM4.60 from RM4.30.

It said in a report yesterday that the government’s upcoming medium term recovery plan in October may serve as a prelude to the potential approval of funding for projects in Budget 2021, which will be tabled in November, and the 12th Malaysia Plan.