Gamuda 2Q net profit up 38% to RM68m

GAMUDA BHD's earnings rose 38% to RM68.03 million in the second quarter ended Jan 31, 2010 from RM49.05 million a year ago, boosted by the strong performances in all its divisions.

It said on Thursday, March 25 the revenue was RM603.24 million compared with RM591.73 million. Earnings per share were 3.37 sen versus 2.45 sen.

For the first half, net profit was RM131.05 million versus RM104.09 million in the previous corresponding period. Revenue was RM1.22 billion compared with RM1.20 billion.

"With the existing CONSTRUCTION [] projects progressing on schedule and the recovery of the property market, the Group's performance is expected to perform well in the remaining quarters of the current financial year," it said.

On the electrified double track project, it said work progress haf improved and to-date 93% of the land has been handed over to the project company. The work progress is expected to accelerate in the next two quarters.

As for the new Doha International Airport project in Qatar, it said the project is progressing on schedule with 80% of the works completed. Progress payments from the Qatar Government continue to be on time.

On the Yenso Park and sewage treatment plant projects in Vietnam, it said they were progressing well. The recent devaluations of the Vietnamese Dong had no significant near term impact on the group.

As for the group's property division, it added that it continued to benefit from improved market sentiments, with semi-detached houses and bungalow homes in gated and guarded parcels in great demand.

"The property division's performance is expected to improve further in the remaining quarters of the financial year," it said.

This good financial result should support Gamuda to move upward amid rising world stock markets. There are a few Gamuda call warrants listed on KLSE, namely Gamuda-ch, Gamuda-ci, Gamuda-cj and Gamuda-ck. Among these 4 call warrants, i would pick Gamuda-ch as my favourite due to its low premium of 2% amd gearing 3x. The maturity day is 24/9/2010.  The other 3 Gamuda call warrants have ridiculously high premium of between 10%-25%.

Ok, good luck.

GOon