Maybank IB Research

PP16832/01/2013 (031128)

Results Review

29 March 2012

Gamuda
Buy (unchanged)
Share price: Target price: RM3.59 RM4.10 (unchanged)

Another good quarter

Met our expectation. RM269m 1HFY12 net profit (+47% YoY), which included a partial gain from the sale of land in Celadon City, was 50% of our full-year forecast. The results however exceeded market expectation at 55% of consensus FY12 forecast. 2H earnings are likely to be stronger HoH; we retain our FY12 forecast for now, which implies a 27% growth. There is also no change to our RM4.10 RNAV-based TP and Buy call. The stock offers value at 14% upside to our target and 12.4x FY12 earnings. The sale of LITRAK could be the next catalyst. Another good quarter. 2QFY12 net profit rose 45% YoY coming from: (i) expansion in construction works recognition (+10%) and construction pretax margin (+6.4 ppts to 13.4%) which was, in turn, driven by the double track rail project, and (ii) rise in property progress billings (+32%) and the recognition of RM18m gain from the sale of a piece of land in Celadon City to AEON (the RM18m gain is Gamudas 60% share in the development). The land sale gain was just partially recognised in 2Q, with another RM7m+ to be recognised in 3Q. KVMRT SBK in the bag. MMC-Gamuda JV is awaiting the official award relating to the underground works package of the KVMRT SBK project worth RM8.2b. Accounting for its 50% share in the project would lift its outstanding order book to RM5.8b from RM1.7b, with the existing Ipoh-Padang Besar double track rail project making up 94% of the RM1.7b. Beyond the KVMRT SBK, Gamuda continues to vie for works under the upcoming Gemas-Johor Baru double track rail as well as the MRT2 and MRT3 projects, to be implemented next year. Sale of LITRAK? Gamuda confirms that PLUS is conducting a due diligence on LITRAK this does not surprise us (see our note on 13 March). However, we think that the takeover of LITRAK should be packaged with that of SPRINT, since LITRAK holds 50% of SPRINT and Gamuda directly holds another 30%. Gamuda could end up with slightly above RM1b in cash (48sen/sh), we estimate, if it sells its entire 45.9% stake in LITRAK at our RM4.20 DCF-based target price, in addition to selling its 30% direct stake in SPRINT.
Gamuda Summary Earnings Table
FYE Jul (RM m) Turnover EBITDA Recurring Net Profit Recurring EPS EPS growth (%) DPS (sen) 2010A 2,455.1 255.6 322.9 16.0 65.8 9.0 22.4 26.4 2.5 2.1 18.2 9.8 5.1 n.a. n.a. 2011A 2,673.2 371.8 425.4 20.7 29.6 11.3 17.3 18.1 3.1 2.0 24.4 11.9 6.0 n.a. n.a. 2012F 2,921.2 542.0 539.3 26.1 25.9 12.0 13.7 12.4 3.3 1.9 23.8 14.1 6.9 493.3 n.a. 2013F 3,631.2 640.3 596.6 28.9 10.6 13.0 12.4 10.5 3.6 1.7 22.1 14.4 7.1 570.0 n.a. 2014F 3,845.9 678.9 629.0 30.5 5.4 13.0 11.8 9.9 3.6 1.6 19.2 14.0 7.0 647.5 n.a.

Wong Chew Hann, CA wchewh@maybank-ib.com (603) 2297 8686

Stock Information
Description: Construction conglomerate with interests in property development, toll and water concessions. Ticker: Shares Issued (m): Market Cap (RM m): 3-mth Avg Daily Turnover (USD m): KLCI: Free float (%): Major Shareholders: Skim Amanah Saham KWAP Generasi Setia (M) Sdn Bhd EPF GAM MK 2,075.4 7,471.4 6.07 1,583.24 67.5 % 8.3 8.0 6.5 6.2

Historical Chart
5.0 4.0 3.0 2.0
1.0 GAM MK Equity

0.0
Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11

Performance: 52-week High/Low 1-mth (4.3) (5.5)

PER (x) EV/EBITDA Div Yield (%) P/BV (x) Net Gearing (%) ROE (%) ROA (%) Consensus Net Profit (RM m) Earnings Revision (%) Source: Maybank-IB

RM3.97/RM2.63 3-mth 20.4 10.0 6-mth (2.2) (5.7) 1-yr (3.5) (8.2) YTD 6.2 2.8

Absolute (%) Relative (%)

Key Indicators
Net cash / (debt) (RM m): NTA/shr (RM): Net Gearing (x): (612.5) 1.85 0.2

Gamuda Summary Results Table

FY Jul (RM m) Turnover 2Q12 769.3 2Q11 607.2 Quarterly % YoY 26.7 1Q12 642.0 % QoQ 19.8 6M12 1,411.3 Cumulative 6M11 1,241.4 % YoY Comments (6M12) 13.7 Growth came mainly from higher construction works recognition, property progress billings and Hanoi land sale to AEON amounting RM70m. 74.4 9.0 (2.8) 13.4 51.2 Property progress billings surged, and strong margin expansion at both construction and property. 55.5 159.3 47.2 45.5 14.3 No second interim dividend proposed. +/-ppt 6.4 6.3 0.6

EBIT Interest expense Interest income Associates profit Pretax profit

143.4 (19.4) 6.6 57.7 188.3

88.6 (16.0) 1.9 50.8 125.3

61.9 21.3 245.3 13.6 50.2

114.4 (14.0) 8.8 57.9 167.2

25.3 38.6 (25.7) (0.3) 12.6

257.8 (33.4) 15.4 115.7 355.4

147.8 (30.6) 15.8 102.0 235.0

Tax Minorities Net profit EPS (sen) DPS (sen) net

(41.0) (10.8) 136.5 6.6 0.0

(28.4) (2.9) 94.0 4.6 0.0

44.5 268.1 45.1 43.8 NM

(33.1) (1.8) 132.3 6.4 6.0

23.9 514.9 3.1 3.0 NM

(74.1) (12.6) 268.8 13.0 6.0

(47.6) (4.9) 182.6 8.9 5.3

EBIT margin (%) Pretax margin (%) Tax rate (%)

2Q12 18.6 24.5 21.8

2Q11 14.6 20.6 22.6

% YoY 4.0 3.8 (0.9)

1Q12 17.8 26.0 19.8

+/- ppt 0.8 (1.6) 2.0

6M12 18.3 25.2 20.8

6M11 11.9 18.9 20.3

SEGMENTAL Revenue: Engineering & construction

2Q12 442.6

2Q11 402.4

% YoY 10.0

1Q12 382.7

% QoQ 15.7

6M12 825.2

6M11 868.8

% YoY (5.0) Near completion of NDIA offset by rising recognition for double track rail and Yenso infrastructure. 68.6 Strong RM870m sales in 1HFY12 (+50% YoY). 2.3 13.7 % YoY 89.5 Margins rose 6.2 ppts YoY. 126.2 Margins rose 6.0 ppts YoY and boosted by Hanoi land sale (in Celadon City) to AEON (RM18m in 2QFY12). (39.6) 13.4 10.1 91.1 51.2 +/-ppt 6.2 6.0 1.3 6.3

Property development

295.6

171.5

72.4

225.2

31.3

520.9

308.9

Water O&M & toll exp Total Pretax profit Engineering & construction Property development

31.1 769.3 2Q12 59.2 68.3

33.4 607.2 2Q11 28.0 31.4

(6.7) 26.7 % YoY 111.2 117.9

34.1 642.0 1Q12 42.7 54.4

(8.7) 19.8 % QoQ 38.6 25.5

65.2 1,411.3 6M12 102.0 122.8

63.7 1,241.4 6M11 53.8 54.3

Water O&M & toll exp Associates profit: Water & expressways Property development Total Pretax margin Engineering & construction Property development Water O&M & toll exp Overall Sources: Company, Maybank-IB

3.0 57.7 54.3 3.5 188.3 2Q12 13.4% 24.3% 55.3% 24.5%

15.1 50.8 49.8 1.1 125.3 2Q11 7.0% 19.0% 58.4% 20.6%

(80.2) 13.6 9.0 225.8 50.2 +/- ppt 6.4 5.3 (3.2) 3.8

12.1 57.9 53.6 4.3 167.2 1Q12 11.2% 26.1% 34.6% 26.0%

(75.2) (0.3) 1.3 (20.5) 12.6 +/- ppt 2.2 (1.8) 20.7 (1.6)

15.0 115.7 107.9 7.8 355.4 6M12 12.4% 23.6% 23.5% 25.2%

24.9 102.0 98.0 4.1 235.0 6M11 6.2% 17.6% 22.2% 18.9%

29 March 2012 Page 2 of 8

Gamuda Gamudas construction order book: RM5.8b outstanding (at 30 Jan 2012)
Outstanding (RM m) Domestic Double-tracking rail (northern section) 1,600 77% completed (vs. 71% @ Oct 11). Completion timeline: Padang Besar-Ipoh (spine line): Jun 14 Bkt Mertajam-Butterworth (spurline): Nov 14 At mobilising stage. To complete in 2017. 100% completed (vs. 98% @ Oct 11). Preparing for handover in July 12. No developments; works not started. 98% completed (vs. 95% @ Oct 11). Testing and commissioning now. Handover in May 12. Status

KVMRT Tunneling Overseas New Doha International Airport, Qatar (P1 & 2) Nam Theun I, Laos Yenso infrastructure

4,100

1,800 100

Total Total (ex-Nam Theun 1) Source: Company

7,600 5,800

MRT-SBK update. 27 work packages worth RM10.5b (53% of total value) have been awarded while another 16 packages are at tender stage and another 45 packages are scheduled to be awarded by Oct 2012 (worth total RM6.3b). Out of the yet-to-be awarded packages, three viaducts (V1, V2 and V7) will be awarded in Apr-May 12 and we expect the value to be sizeable at RM0.5b-RM1b, with two of the three packages reserved for Bumiputera contractors. KVMRT tunnelling groundwork starting soon. Management expects the formal letter of award of the RM8.2b (stations: 60%, tunnelling: 40%) to be given to the MMC-Gamuda JV soon as MRT Corporation has already announced the award in public. To kick-start the project, MRT Corp will give an advance payment of 5% to the MMC-Gamuda JV. Groundwork (i.e. carpet bombing at Cochrane) will start in Apr 12 and excavation of the tunnels is targeted to start in mid-2013. Beyond the MRT-SBK. Gamuda is awaiting the governments decision on the RM8b Gemas-Johor Baru double track rail project. It is believed to be teaming up with China Railway Construction Co. for this job. Assuming a 50:50 JV, this job could add another RM4b to Gamudas order book, lifting total outstanding works to above RM10b. In addition, Gamuda continues to vie for works relating to the MRT2 Orbital Line (41km 40% tunnel, 30 stations) and MRT3 North-South Line (46km 20% tunnel, 24 stations) with schedule implementation from mid-2013. Robust property sales. New sales in 1HFY12 was RM870m (+50% YoY), lifting unbilled sales to RM1.3b (end-Oct 2011: RM1.2b). The key drivers are Bandar Botanic, Horizon Hills, Jade Hills and Gamuda City. Gamuda retains its RM1.35b domestic sales target for FY12. Over at Vietnam, initial sales at Celadon City reflects the sluggish property sector especially for apartments but strong response was seen at Gamuda City. The first two launches were fully taken-up and third launch is also almost fully sold (RM220m sales in first 4 months). FY12 sales target for Vietnam is retained at RM650m as the upward revision in Gamuda City compensates for the downward revision in Celadon.

29 March 2012 Page 3 of 8

Gamuda Gamudas property landbanks and GDVs

Projects Remaining land area (acres) 25 10 150 760 230 2 3 1,180 450 200 650 1,830 Remaining GDV (RM m) 150 80 1,200 3,700 1,300 300 600 7,330 9.000 5,000 14,000 21,330 FY10A sales (RM m) 100 110 330 140 140 820 820 FY11A sales (RM m) 100 100 670 270 180 1,320 1,320 FY12F sales (RM m) 80 50 650 320 220 30 1,350 500 150 650 2,000 FY13F sales (RM m) 70 30 450 370 250 80 100 1,350 750 250 1,000 2,350

Malaysia K Kemuning Valencia Botanic Horizon Hills Jade Hills Madge Jln Robertson Sub-total (1) Vietnam Gamuda City Celadon City Sub-total (2) Total (1) + (2)

Sources: Company, Maybank IB

Gamuda: Foreign shareholding

70%

60% 50%
40% 30% 20%

Feb 2012: 33%

10% 0%
Mar-07

Jul-07

Jul-08

Jul-09

Jul-10

Oct-07

Apr-08

Oct-08

Apr-09

Oct-09

Apr-10

Jul-11

Jan-08

Jan-09

Jan-10

Jan-11

Oct-11

Oct-10

Apr-11

Sources: Bloomberg, Maybank IB

Gamuda: Rolling one-year forward PER

(x) 40 30 20
10 0

+1sd: 21.0 Mean: 16.0 -1sd: 11.0

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Sources: Bloomberg, Maybank IB

29 March 2012 Page 4 of 8

Jan-12

Jan-09

Jan-10

Jan-11

Jan-12

Gamuda

INCOME STATEMENT (RM m) FY Jul Revenue EBITDA Depreciation & Amortisation Operating Profit Associates Interest (Exp)/Inc Exceptional Items Pretax Profit Tax Minority Interest Net Profit Recurring Net Profit Revenue Growth % EBITDA Growth (%) EBIT Growth (%) Net Profit Growth (%) Recurring Net Profit Growth (%) Tax Rate % 2011A 2,673.2 371.8 (19.2) 352.6 222.4 (30.5) 0.0 544.5 (111.6) (7.5) 425.4 425.4 8.9 45.5 48.3 31.7 31.7 20.5 2012F 2,921.2 542.0 (20.7) 521.2 227.3 (34.9) 0.0 713.7 (165.4) (9.0) 539.3 539.3 9.3 45.8 47.8 26.8 26.8 23.2 2013F 3,631.2 640.3 (22.4) 617.9 218.8 (39.3) 0.0 797.3 (190.9) (9.8) 596.6 596.6 24.3 18.1 18.5 10.6 10.6 23.9 2014F 3,845.9 678.9 (24.2) 654.7 229.7 (43.8) 0.0 840.6 (201.6) (10.1) 629.0 629.0 5.9 6.0 6.0 5.4 5.4 24.0

BALANCE SHEET (RM m) FY Jul Fixed Assets Other LT Assets Cash/ST Investments Other Current Assets Total Assets ST Debt Other Current Liabilities LT Debt Other LT Liabilities Minority Interest Shareholders' Equity Total Liabilities+Capital Share Capital (m) Net Debt Working Capital Gross Gearing % 2011A 345.7 2,517.7 1,049.0 3,638.9 7,551.3 626.2 1,543.6 1,323.5 171.2 200.3 3,686.6 7,551.3 2,064.8 900.7 2,112.2 52.9 2012F 388.6 2,741.4 1,100.2 3,773.5 8,003.6 657.5 1,597.9 1,389.7 171.2 209.3 3,978.1 8,003.6 2,064.8 947.0 2,199.2 51.5 2013F 430.1 2,956.3 1,197.0 4,108.6 8,691.9 690.4 1,845.9 1,459.1 171.2 219.1 4,306.3 8,691.9 2,064.8 952.5 2,292.7 49.9 2014F 470.1 3,181.8 1,361.0 4,230.7 9,243.6 724.9 1,919.4 1,532.1 171.2 229.2 4,666.9 9,243.6 2,064.8 896.0 2,344.2 48.4

CASH FLOW (RM m) FY Jul Profit after taxation Depreciation Net interest receipts/(payments) Working capital change Cash tax paid Others Cash flow from operations Capex Disposal/(purchase) Others Cash flow from investing Debt raised/(repaid) Equity raised/(repaid) Dividends (paid) Others Cash flow from financing Change in cash Sources: Company, Maybank IB 2011A 544.5 19.2 30.5 (601.0) (111.6) (176.0) (294.3) (59.9) 0.0 0.0 (59.9) 159.7 0.0 (232.3) 0.0 (72.6) (426.8) 2012F 713.7 20.7 34.9 (87.0) (165.4) (558.0) (41.1) (60.0) 0.0 0.0 (60.0) 467.1 0.0 (247.8) 0.0 219.3 118.2 2013F 797.3 22.4 39.3 (93.5) (190.9) (557.0) 17.7 (60.0) 1.0 0.0 (59.0) 472.0 0.0 (268.4) 0.0 203.5 162.2 2014F 840.6 24.2 43.8 (51.5) (201.6) (557.0) 98.6 (60.0) 1.0 0.0 (59.0) 477.1 0.0 (268.4) 0.0 208.6 248.2

RATES & RATIOS FY Jul EBITDA Margin (%) Op. Profit Margin (%) Net Profit Margin (%) ROE (%) ROA (%) Net Margin Ex. El % Dividend Cover (x) Interest Cover (x) Asset Turnover (x) Asset/Debt (x) Debtors Turn (days) Creditors Turn (days) Inventory Turn (days) Net Gearing % Debt/ EBITDA (x) Debt/ Market Cap (x) EV/EBITDA (x) 2011A 13.9 13.2 15.9 11.9 6.0 15.9 1.8 6.0 0.4 3.9 130.5 99.1 67.5 24.4 5.2 0.3 18.7 2012F 18.6 17.8 18.5 14.1 6.9 18.5 2.2 8.4 0.4 3.9 130.5 99.1 67.5 23.8 3.8 0.3 12.9 2013F 17.6 17.0 16.4 14.4 7.1 16.4 2.2 9.5 0.4 4.0 130.5 99.1 67.5 22.1 3.4 0.3 10.9 2014F 17.7 17.0 16.4 14.0 7.0 16.4 2.3 9.6 0.4 4.1 130.5 99.1 67.5 19.2 3.3 0.3 10.3

29 March 2012 Page 5 of 8

Gamuda

ANALYSTS COVERAGE / RESEARCH OFFICES

MALAYSIA
WONG Chew Hann, CA Head of Research (603) 2297 8686 wchewh@maybank-ib.com Strategy Construction & Infrastructure Desmond C H NG, ACA (603) 2297 8680 desmond.chng@maybank-ib.com Banking - Regional LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com Oil & Gas Automotive Shipping ONG Chee Ting (603) 2297 8678 ct.ong@maybank-ib.com Plantations Mohshin AZIZ (603) 2297 8692 mohshin.aziz@maybank-ib.com Aviation Petrochem Power YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com Gaming Regional Media Power WONG Wei Sum, CFA (603) 2297 8679 weisum@maybank-ib.com Property & REITs LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com Building Materials Manufacturing Technology LEE Cheng Hooi Head of Retail chenghooi.lee@maybank-ib.com Technicals

SINGAPORE
Stephanie WONG Head of Research (65) 6432 1451 swong@maybank-ke.com.sg Strategy Small & Mid Caps Gregory YAP (65) 6432 1450 gyap@maybank-ke.com.sg Technology & Manufacturing Telcos - Regional Rohan SUPPIAH (65) 6432 1455 rohan@maybank-ke.com.sg Airlines Marine & Offshore Wilson LIEW (65) 6432 1454 wilsonliew@maybank-ke.com.sg Hotel & Resort Property & Construction Anni K UM (65) 6432 1470 annikum@maybank-ke.com.sg Conglomerates REITs James KOH (65) 6432 1431 jameskoh@maybank-ke.com.sg Logistics Resources Small/ Mid cap Eric ONG (65) 6432 1857 ericong@maybank-ke.com.sg Marine & Offshore Transportation Energy OOI Yi Tung (65) 6433 5712 ooiyitung@maybank-ke.com.sg Property & Construction YEAK Chee Keong, CFA (65) 6433 5730 yeakcheekeong@maybank-ke.com.sg Retail & Consumer Engineering Infrastructure Alison FOK (65) 6433 5745 alisonfok@maybank-ke.com.sg Services Bernard CHIN (65) 6433 5726 bernardchin@maybank-ke.com.sg Conglomerates Industrials

THAILAND
Mayuree CHOWVIKRAN Head of Research (66)-2658-6300 ext 1440 mayuree.c@maybank-ke.co.th Strategy Maria BRENDA SANCHEZ LAPIZ Co-Head of Research Dir (66)-2257-0250 | (66)-2658-6300 ext 1399 Maria.L@maybank-ke.co.th Suttatip PEERASUB (66)-2658-6300 ext 1430 suttatip.p@maybank-ke.co.th Media Commerce Sutthichai K UMWORACHAI (66)-2658-6300 ext 1400 sutthichai.k@maybank-ke.co.th Energy Petrochem Termporn TANTIVIVAT (66)-2658-6300 ext 1520 termporn.t@maybank-ke.co.th Property Woraphon WIROONSRI (66)-2658-6300 ext 1560 woraphon.w@maybank-ke.co.th Banking & Finance Jaroonpan WATTANAWONG (66)-2658-6300 ext 1404 jaroonpan.w@maybank-ke.co.th Transportation Small cap. Suchot THIRAWANNARAT (66)-2658-6300 ext 1550 suchot.t@maybank-ke.co.th Automotive Construction Materials Soft commodity

PHILIPPINES
Luz LORENZO Head of Research +63 2 849 8836 luz_lorenzo@maybank-atrke.com Strategy Laura DY-LIACCO (63) 2 849 8840 laura_dyliacco@maybank-atrke.com Utilities Conglomerates Telcos Lovell SARREAL (63) 2 849 8841 lovell_sarreal@maybank-atrke.com Consumer Media Cement Mining Kenneth NERECINA (63) 2 849 8839 kenneth_nerecina@maybank-atrke.com Conglomerates Property Ports/ Logistics Katherine TAN (63) 2 849 8843 kat_tan@maybank-atrke.com Banks Construction

HONG KONG / CHINA

Edward FUNG Head of Research (852) 2268 0632 edwardfung@kimeng.com.hk Construction Ivan CHEUNG (852) 2268 0634 ivancheung@kimeng.com.hk Property Industrial Ivan LI (852) 2268 0641 ivanli@kimeng.com.hk Banking & Finance Jacqueline KO (852) 2268 0633 jacquelineko@kimeng.com.hk Consumer Staples Andy POON (852) 2268 0645 andypoon@kimeng.com.hk Telecom & equipment Samantha KWONG (852) 2268 0640 samanthakwong@kimeng.com.hk Consumer Discretionaries Alex YEUNG (852) 2268 0636 alexyeung@kimeng.com.hk Industrial Catherine CHAN (852) 2268 0631 catherinechan@kimeng.com.hk Cement

INDONESIA
Katarina SETIAWAN Head of Research (62) 21 2557 1125 ksetiawan@kimeng.co.id Consumer Strategy Telcos Lucky ARIESANDI, CFA (62) 21 2557 1127 lariesandi@kimeng.co.id Base metals Coal Heavy Equipment Oil & Gas Rahmi MARINA (62) 21 2557 1128 rmarina@kimeng.co.id Banking Multifinance Pandu ANUGRAH (62) 21 2557 1137 panugrah@kimeng.co.id Auto Heavy equipment Plantation Toll road Adi N. WICAKSONO (62) 21 2557 1130 anwicaksono@kimeng.co.id Generalist Anthony Y UNUS (62) 21 2557 1134 ayunus@kimeng.co.id Cement Infrastructure Property Arwani PRANADJAYA (62) 21 2557 1129 apranadjaya@kimeng.co.id Technicals

VIETNAM
Michael Kokalari, CFA Head of Research +84 838 38 66 47 michael.kokalari@kimeng.com.vn Strategy Nguyen Thi Ngan Tuyen +84 844 55 58 88 x 8081 tuyen.nguyen@kimeng.com.vn Confectionary and Beverage Oil and Gas Ngo Bich Van +84 844 55 58 88 x 8084 van.ngo@kimeng.com.vn Banking Insurance Nguyen Quang Duy +84 844 55 58 88 x 8082 duy.nguyenquang@kimeng.com.vn Resources Property Trinh Thi Ngoc Diep +84 444 55 58 88 x 8208 diep.trinh@kimeng.com.vn Property & Construction Power Dang Thi Kim Thoa +84 844 55 58 88 x 8083 thoa.dang@kimeng.com.vn Consumer & Services Technology & Telecom Nguyen Trung Hoa +84 844 55 58 88 Pharmaceutical Fishery

INDIA
Jigar SHAH Head of Research (91) 22 6623 2601 jigar@kimeng.co.in Oil & Gas Automobile Cement Anubhav GUPTA (91) 22 6623 2605 anubhav@kimeng.co.in Metal & Mining Capital goods Property Haripreet BATRA (91) 226623 2606 haripreet@kimeng.co.in Software Media Ganesh RAM (91) 226623 2607 ganeshram@kimeng.co.in Telecom Contractor Gagan KWATRA (91 )226623 2612 gagan@kimeng.co.in Small Cap

REGIONAL
WONG Chew Hann, CA Regional Head of Research (603) 2297 8686 wchewh@maybank-ib.com THAM Mun Hon (852) 2268 0630 thammunhon@kimeng.com.hk Regional Strategist ONG Seng Yeow (852) 2268 0644 ongsengyeow@maybank-ke.com.sg Regional Products & Planning

ECONOMICS
Suhaimi ILIAS Chief Economist (603) 2297 8682 suhaimi_ilias@maybank-ib.com Singapore | Malaysia Luz LORENZO Economist (63) 2 849 8836 luz_lorenzo@maybank-atrke.com Philippines | Indonesia

29 March 2012 Page 6 of 8

Gamuda

APPENDIX 1
Definition of Ratings
Maybank Investment Bank Research uses the following rating system: BUY HOLD SELL Total return is expected to be above 15% in the next 12 months Total return is expected to be between -15% to 15% in the next 12 months Total return is expected to be below -15% in the next 12 months

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investm ent ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):

Adex = Advertising Expenditure BV = Book Value CAGR = Compounded Annual Growth Rate Capex = Capital Expenditure CY = Calendar Year DCF = Discounted Cashflow DPS = Dividend Per Share EBIT = Earnings Before Interest And Tax EBITDA = EBIT, Depreciation And Amortisation EPS = Earnings Per Share EV = Enterprise Value FCF = Free Cashflow FV = Fair Value FY = Financial Year FYE = Financial Year End MoM = Month-On-Month NAV = Net Asset Value NTA = Net Tangible Asset P = Price P.A. = Per Annum PAT = Profit After Tax PBT = Profit Before Tax PE = Price Earnings PEG = PE Ratio To Growth PER = PE Ratio QoQ = Quarter-On-Quarter ROA = Return On Asset ROE = Return On Equity ROSF = Return On Shareholders Funds WACC = Weighted Average Cost Of Capital YoY = Year-On-Year YTD = Year-To-Date

Disclaimer
This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of t his report by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank B erhad, its affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but not always identified by the use of words such as anticipate, believe, estimate, intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on thes e forwardlooking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrenc e of unanticipated events. This report is prepared for the use of Maybank Investment Bank Berhad's clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of Maybank Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

29 March 2012 Page 7 of 8

Gamuda
Malaysia

Maybank Investment Bank Berhad (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194 Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888 Fax: (603) 2282 5136

Singapore

Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Research Pte Ltd 9 Temasek Boulevard #39-00 Suntec Tower 2 Singapore 038989 Tel: (65) 6336 9090 Fax: (65) 6339 6003

London

Maybank Kim Eng Securities (London) Ltd 6/F, 20 St. Dunstans Hill London EC3R 8HY, UK Tel: (44) 20 7621 9298 Dealers Tel: (44) 20 7626 2828 Fax: (44) 20 7283 6674

New York

Maybank Kim Eng Securities USA Inc 777 Third Avenue, 21st Floor New York, NY 10017, U.S.A. Tel: (212) 688 8886 Fax: (212) 688 3500

Hong Kong

Kim Eng Securities (HK) Ltd Level 30, Three Pacific Place, 1 Queens Road East, Hong Kong Tel: (852) 2268 0800 Fax: (852) 2877 0104

Indonesia

PT Kim Eng Securities Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189

India

Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India Tel: (91).22.6623.2600 Fax: (91).22.6623.2604

Philippines

Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Philippines 1200 Tel: (63) 2 849 8888 Fax: (63) 2 848 5738

Thailand

Maybank Kim Eng Securities (Thailand) Public Company Limited 999/9 The Offices at Central World, 20th - 21st Floor, Rama 1 Road Pathumwan, Bangkok 10330, Thailand Tel: (66) 2 658 6817 (sales) Tel: (66) 2 658 6801 (research)

Vietnam
In association with

Saudi Arabia
In association with

Kim Eng Vietnam Securities Company 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 838 38 66 36 Fax : (84) 838 38 66 39

Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575 Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787

South Asia Sales Trading

Connie TAN connie@maybank-ke.com.sg Tel: (65) 6333 5775 US Toll Free: 1 866 406 7447

North Asia Sales Trading

Eddie LAU eddielau@kimeng.com.hk Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267 www.maybank-ke.com | www.kimengresearch.com.sg

APPENDIX 1
Additional Disclaimer (for purpose of distribution in Singapore)
This report has been produced as of the date hereof and the information herein maybe subject to change. Kim Eng Research Pte Ltd ("KERPL") in Singapore has no obligation to update such information for any recipient. Recipients of this report are to contact KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. As of 29 March 2012, KERPL does not have an interest in the said company/companies.

Additional Disclaimer (for purpose of distribution in the United States)

This research report prepared by Maybank Investment Bank Berhad is distributed in the United States (US) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Kim Eng Securities USA, a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Kim Eng Securities USA in the US shall be borne by Kim Eng. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. This report is not directed at you if Kim Eng Securities is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Kim Eng Securities is permitted to provide research material concerning investments to you under relevant legislation and regulations. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply if the reader is receiving or accessing this report in or from other than Malaysia. As of 29 March 2012, Maybank Investment Bank Berhad and the covering analyst does not have any interest in in any companies recommended in this Market themes report. Analyst Certification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Additional Disclaimer (for purpose of distribution in the United Kingdom)

This document is being distributed by Kim Eng Securities Limited, which is authorised and regulated by the Financial Services Authority and is for Informational Purposes only.This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

Published / Printed by

Maybank Investment Bank Berhad (15938-H) (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194 Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888; Fax: (603) 2282 5136 http://www.maybank-ib.com 29 March 2012 Page 8 of 8