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Fair value? Interesting question.. Those research houses put TP of more than 5.00-5.30 in past 2 months... Now dropping due to data center projects n the US may restrict supply of chips to country like Malaysia...
Usually for construction sector, because the borrowing is very high, the PE is around 10. But since it is Gamuda we are talking about, and seems like a lot of construction contract is coming in, we stretch it to PE20. So the fair value would be RM3.20.
If I am going to buy something PE30, and I am going to base something on future value - I would be better off going for the tech sector in the US. Why would I buy a construction company? Doesn't make sense and I am risking my capital unnecessarily.
Below 4.00, the risk is moderate due to Gamuda still one of the largest construction firms in Malaysia... Many research houses in Malaysia like to push up share prices by increasing TP every 2 week then like what happened now, they can mute to give views for 2 months...
If JP Morgan could give SunCon TP of 2.50, it can give TP of 3.50-3.60 to Gamuda in 2 month time... JP Morgan able to make Topglove to drop from Rm4-5 ( peak time was $9.00-9.50) to drop to below 80 cents....