KUALA LUMPUR: Gamuda Bhd's upcoming new projects in Vietnam is expected to enhance the group's financial years 2023 (FY23) and FY24 earnings per share (EPS) in a range of 2.4 per cent to 3.1 per cent respectively.
Public Investment Bank Bhd (PublicInvest) said this was based on its preliminary assumptions on a pre-tax margin of 15 per cent and a development period of five years with certain progress completion and sales.
It said Gamuda planned to launch the projects by the second half of 2022 with a gross development value (GDV) of US$117 million (RM495) million upon the completion of its land acquisition in the third quarter (Q3) of 2022.
"We are pleased with this development as the acquisition is in line with Gamuda's emphasis on international projects in its portfolio (which accounted for two-thirds of its property sales in FY21) and its commitment for deepening its presence in the Vietnamese market.
"The Binh Duong acquisition is expected to expand its existing project in Celadon City which currently just left with 20 acres (8.09ha) landbank (RM750 million GDV) and is expected to be fully developed in the next two years.
"This acquisition also is expected to increase its landbank and GDV in Vietnam market to 303.8 acres (122.94ha) and RM11.3 billion from 290 acres (117.36ha) and RM10.8 billion respectively," it said in a report today.
On Monday, Gamuda announced that it was acquiring a 13.8 acres vacant residential plot of land in Binh Duong New City for US$53.88 million (RM228.5 million).
PublicInvest said the purchase price of about RM380 per sq ft represented a discount of 3.1 per cent to its current market value of US$56.1 million or RM235.9 million (about RM392 per sq ft) that was valued by independent valuer using the comparison method.
"With the group's cash balance of RM3.5 billion and low net gearing of 0.18x as of FY21, this acquisition is expected to be settled via its internally generated funds," it added.