PETALING JAYA: Gamuda Bhd’s net profit of RM425.4mil for the financial year ending July 31 compared with RM322.9mil a year ago is within expectation, analysts said.

Gamuda told Bursa Malaysia on Thursday that the higher net profit was attributable to improved contributions from all divisions.

Kenanga Research said the net profit was higher than the group’s previous record of RM325mil in the financial year 2008 (FY08).

It maintains an “outperformed” call on the stock and keeps its target price of RM3.66 based on 16 times price/earnings ratio to earnings per share of 23.1 sen.

ECM Libra Investment Research said it had trimmed FY12-13 earnings estimates by 10% and 14% respectively to reflect a more conservative stance on its outlook for Gamuda’s construction and property divisions.

“With focus now very much on securing the tunnelling works for the Klang Valley MyRapid Transit in FY12, we have cut our annual construction order book replenishment assumption for the subsequent years.” It also cut property sales estimate following management’s almost 50% cut in internal target.

“We’re seing weaknesses in Vietnam due to the softening property market there on the back of credit tightening by the authorities to tame rising inflation,” it said, adding that despite recent selldown, it believed Gamuda was fairly valued. It maintains its “hold” call on the counter with target price of RM2.94.

Meanwhile, OSK Research has maintained a “buy” call on Gamuda.

“We cut our construction earnings multiplier from 15 times to 14, given the weak market sentiment. This reduces our fair value from RM4.14 to RM3.89. With a 35.6% upside, we have retained our ‘buy’ rating,” it said.