PETALING JAYA: Gamuda Bhd is not expected to see any delay in the implementation of the double-tracking project despite the new state administrations. In fact, works are ahead of schedule.
The senior management of Gamuda had a luncheon for analysts on Wednesday and affirmed to the investor community that it was operationally “business as usual.”
Aseambankers, in a report, noted that the Ipoh-Rawang-Padang Besar double track was still anticipated to see 15% gross margin as sufficient cost buffers had been built in.
In a report, AmResearch said the project, a joint venture between Gamuda and MMC Corp Bhd, had allocated up to 24%, or RM3bil, to bumiputra subcontractors, a third of which had already been awarded.
On another note, Aseambankers said Gamuda would take some time to finalise the sale of Syarikat Pengeluar Air Selangor Sdn Bhd to Kumpulan Darul Ehsan Bhd even though it had been indicated that the parties had agreed on the pricing, which was also approved by the Federal Government before the general election.
Overseas wise, property development in Vietnam remained unchanged despite the present high inflation and tightening of loans.
Gamuda hoped to lock-in sales of two of 10 parcels of land in Yenso, Vietnam, in the fiscal year ending July 31, 2009, Aseambankers noted.
The company's Nam Theun 1 hydropower project in Laos is currently being reviewed on higher costs of project implementation, which could result in a 20% increase in tariffs.
It also noted that the Securities Commission recently approved the proposed RM1.5bil Sukuk issue for Lebuhraya Damansara-Puchong's debt-refinancing plan.
A capital repayment by concessionaire, Lingkaran Trans Kota Holdings Bhd, was imminent following the debt restructuring, Aseambankers said.
The research house said Gamuda was on track to meet consensus expectations when it released its second-quarter results next week.
By The Star
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