Gamuda and RM30b LRT system

Gamuda has yet to enter into detailed discussions with the authorities on the RM30b Klang Valley LRT system

Dear all,

Gamuda (GAM MK, Hold, TP: RM2.00 )

Gamuda has yet to enter into detailed discussions with the authorities on the RM30b Klang Valley LRT system. Also, it has no details on the number of packages for this project, and the specific project details. This clarification follows a recent report which had quoted a potential RM15b worth of works for Gamuda.

That Gamuda is vying for this project is well known – as confirmed by Dato' Lin in an analyst briefing in Dec '08. Nonetheless, our view is that the project would be phased out, and the RM30b works value to end up with not just one or two main contractors alone.

We maintain our Hold call on Gamuda with an unchanged TP of RM2.00 (RNAV).

Regards,