TA valuation & TP of RM1.45 is a bit conservative because:
1) Underestimates water/plantation/hydro/solar projects 2) Too conservative on construction margin 3) Other smaller engineering, mechanical and construction projects 4) underestimate capital city recognition
This is actually a good stock look at his revenue and p/e is very good and has a mother office behind GADANG for GADANG as a grandmother for GADANG son so sure up no problem pne
I don't understand Monday's selloff was due to sell on news and Gadang has gapped up before the announcement of the MRT2 award. What about TRC? Continue to go up before and after the announcement of the MRT2 award.
The stock price does not have to react to good news immediately. It may react later. That's why it started consolidating today. There is some reason for this.
Given its strong execution capability with proven track records, we raise the target PE multiple for the construction division from 12x to 14x, as the division is now backed by strong outstanding order book after the sizeable job win. Following the revision in earnings forecasts and the change in target PE multiple for the construction division, we raise the target price from RM1.37 to RM1.45, based on 14x CY17 construction earnings, 8x CY17 property earnings, 12x CY17 utility earnings, and assigned value for oil palm plantation landbank of RM25k/ha. Maintain BUY call on the stock. TA Research - 13 Mar 2017
With the completion of the awards of the final three packages of MRT 2, we expect the momentum in rail awards to be sustained by the launch of the RM55 bn ECRL project by July , in addition to the awards for the RM9bn LRT 3 beginning May, and the RM8bn Gemas-JB double tracking in mid-2017.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
8wpwtmt8
2,949 posts
Posted by 8wpwtmt8 > 2017-03-14 10:37 | Report Abuse
Volume decreased and Gadang goes back to sleeping mode. Got to wait wait for next month 3rd quarter results or hospital project.