Gamuda targets RM6b to RM8b orderbook replenishment in FY18

SHAH ALAM (Dec 7): Gamuda Bhd has targeted to replenish its construction orderbook by between RM6 billion and RM8 billion for its financial year ending July 31, 2018 (FY18).

Its current orderbook of RM8 billion will keep the group busy for the next three years, Gamuda's managing director Datuk Lin Yun Ling told reporters at a press conference today.

Meanwhile, the group's property arm has a sales target of RM3.5 billion for FY18, half of which is expected to come from its overseas projects, he said. The group recorded property sales of RM2.4 billion in FY17, with its properties in Vietnam driving the 56% overseas contribution that year.

On the subject of the Mass Rapid Transit 3 (MRT 3), Lin said the group would bid for the project "as the opportunity arises".

"We are still fully focused on the underground works for MRT2," he said, noting that dedicated ground mapping works had just been completed and four of the 12 tunnel boring machines (TBMs) will face "very challenging mixed soil conditions".

Lin also said Gamuda will put further large investments in capital expenditure "on hold" for the time being as it has already invested heavily in its industrial building systems (IBS) factories and TBMs.

The group has allocated approximately RM248 million for its second IBS factory and about RM161 million for its remaining four TBMs this year.

At the midday break, Gamuda dipped 0.64% or 3 sen to RM4.67 with 669,700 shares done. — theedgemarkets.com

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