KUALA LUMPUR, Nov 9 (Bernama) -- ECM Libra Investment Research is maintaining its "hold" call on Gamuda Bhd (Gamuda), with a target price of RM2.94 per share, given the potential headwinds from project implementation risks and external economic uncertainties.

In a research note today, ECM Libra said, "Despite the delay in signing the project delivery partner agreement from October to December 2011, we believe MMC-Gamuda Joint Venture Sdn Bhd, remains the firm favourite to lead the development of the Klang Valley Mass Rapid Transit (MRT) project.

"Although the land acquisition issue along Jalan Sultan, Jalan Inai and Jalan Bukit Bintang may affect implementation, we do not think it will hold up the tunnelling work in a significant way as it will only reach the affected areas in 2014."

Apart from the MRT project, it said Gamuda also intends to tender for the Gemas-Johor Bahru stretch of the electrified double-tracking project, worth RM8 billion, as well as the Sungai Langat Two water treatment plant at RM2.5 billion.

"That said, we are not hopeful of the latter, due to the continued impasse in the water industry consolidation in Selangor," it said.

On market outlook, ECM Libra said that given the weak property demand in Vietnam amid credit tightening and high inflation, it was not too hopeful on the performance of near-term launches of Gamuda City (Hanoi) and Celadon City (Ho Chi Minh City).

Property sales from Gamuda's mature townships in Malaysia, however, is expected to pick up the slack in financial year 2012-2013, it said.