KUALA LUMPUR (Oct 18): Shares of Gadang Holdings Bhd rose 2.02% in the morning trades today after RHB Reseacrch Institute Sdn Bhd maintained its “buy” rating on the stock with a higher target price of RM3.50 (from RM3.10) and said Gadang’s medium-term earnings visibility, backed by its solid outstanding construction orderbook and unbilled property sales.

In a note today, the research said it also deemed the latest Kwasa Land rights award as value-accretive.

“We raise our target price to RM3.50 (from RM3.10, 18% upside) post our earnings revisions, GDV update and a re-rating of its construction segment target P/E to 10x (from 9x).

“We reiterate Buy given its solid earnings visibility and undemanding valuation,” it said. — theedgemarkets.com

  1. Kwasa Land collaborates with Gagasan Nadi Cergas to develop first affordable housing project in Kwasa Damansara
  2. Gagasan Nadi Cergas to develop RM1b GDV affordable housing project in Selangor
  3. Gadang lands RM100m sub-contract under Central Spine Road project