HwangDBS: MMC-Gamuda strong contender for Sg Buloh-Kajang MRT line tunnelling works

KUALA LUMPUR (Mar 14): MMC-Gamuda Joint Venture Sdn Bhd is in the front seat after being prequalified for the technical stage of the RM8 billion Sungai Buloh-Kajang Mass Rapid Transit (MRT) line tunnelling works.

HwangDBS Vickers Research said MMC-Gamuda has valuable experience and a competitive cost structure.

"The award is expected to be issued next month. The commercial evaluation is underway," the research house said in a statement.

HwangDBS said the MMC-Gamuda was also a strong contender for future projects such as the other two MRT line packages and the Penang-Butterworth undersea tunnel.

By June, Gamuda's orderbook could increase five-fold to RM10 billion, with the Sungai Buloh-Kajang MRT line and Gemas-Johor Bahru rail double tracking, it said.

HwangDBS expects MMC-Gamuda second quarter results for financial year ending 2012 will lead Gamuda to a record RM481 million net profit, driven by the maturing double-tracking project and RM1.2 billion unbilled property sales.

The research house has recommended a "buy" call on Gamuda at RM3.70. — Bernama