PETALING JAYA: Gamuda Bhd expects its 2022’s financial performance to be driven by overseas and local property sales, as well as the continued progress of the Mass Rapid Transit (MRT) Putrajaya Line (formerly called MRT Line 2).(pic)

       In a filing with Bursa Malaysia yesterday, the group said its resilience was underpinned by its construction order book which tripled to RM10.4bil.

       This was following its successful bids for the AU$2.16bil (RM6.82bil) Sydney Metro West – Western Tunnelling Package in Australia – and the SG$467mil (RM1.45bil) Defu station and tunnel project in Singapore.

       Also, the group has unbilled property sales of RM5.2bil and a healthy balance sheet with a low gearing of 0.2 times coupled with a strong cash position.

       Gamuda also said that public spending and stimulus for infrastructure development, constrained by rising government fiscal burden, may see some momentum with the revival of public-private partnerships.

       However, the group noted that ongoing risks to the country’s economic and fiscal outlook posed by the progression of the Covid-19 pandemic and uncertainties surrounding the Delta and now Omicron variants had dampened economic activity.

       For its second quarter ended Jan 31, 2022, the group saw both its revenue and net profit jumping 44% year-on-year (y-o-y) to RM1.29bil and RM177mil respectively, due to stronger construction and property earnings as works on all fronts picked up pace.

       For its second quarter ended Jan 31, 2022, the group saw both its revenue and net profit jumping 44% year-on-year (y-o-y) to RM1.29bil and RM177mil respectively, due to stronger construction and property earnings as works on all fronts picked up pace.

       For the half year under review (1H22), revenue grew 23% y-o-y to RM2bil while net profit was 41% higher to RM329.5mil, as construction and property earnings surged on the back of a pick-up in construction activities and higher contribution from overseas property projects.

       Gamuda noted that in 1H22, property sales jumped 27% as overseas projects contributed almost 60% of total property sales whilst local sales doubled.

       “The property division sold RM1.9bil worth of properties in the first half, a 27% jump y-o-y,” said the group.

       Overseas projects remained the biggest sales contributor.

       This was especially for the Vietnam and Singapore markets which contributed almost 60% of the total property sales whilst sales for local projects doubled up.

       Also, Gamuda Land is on track to achieve its full-year sales target of RM4bil.

       This is 38% more than last year’s RM2.9bil in sales.

       Separately in a recent report, Maybank Investment Bank (Maybank IB) said Gamuda’s recent RM6.5bil win in Australia reaffirmed the group’s capability, as it continued to target an even larger engineering and construction (E&C) order book size of RM20bil by mid-2023.

       “Higher pre-sales can also be expected of its property projects as it embeds sustainability into both design and concept.

       “A highway trust for its four tolled urban highways, if materialised, will unlock value. We raise earnings forecasts to incorporate its recent E&C wins.”

       With RM10.4bil already in hand, Maybank IB said the next RM10bil is expected to come from both domestic and overseas jobs.

       “Target wins in Malaysia include flood mitigation projects with the Cabinet having raised the allocation for such projects to RM15bil for 2023 till 2030,” it said.