[%VwHm%]
Research by TA
Hold – Target Price RM0.42

“Secures Maiden Data Centre Project Worth RM280mn"

Considering GADANG as one of the strong candidates for upcoming large- scale infrastructure projects such as the Penang LRT and MRT3, alongside the potential expansion within the burgeoning DC sector, we adjust our target PER from 10x to 15x against the construction division's CY25 earnings. This revised valuation takes into account a 20% discount compared to SUNCON's target PER of 19x, acknowledging GADANG's smaller market capitalisation. Nevertheless, we believe that this valuation remains equitable, considering the promising earnings trajectory expected over the next two years. All in all, we raise our SOP-derived target price to RM0.42 (from RM0.22). Upgrade to Hold.

Analyst:
Raymond Ng Ing Yeow 
[%ZSlP%]

$KLSE-GADANG
Research by TA
Hold – Target Price RM0.42

“Secures Maiden Data Centre Project Worth RM280mn"

Considering GADANG as one of the strong candidates for upcoming large- scale infrastructure projects such as the Penang LRT and MRT3, alongside the potential expansion within the burgeoning DC sector, we adjust our target PER from 10x to 15x against the construction division's CY25 earnings. This revised valuation takes into account a 20% discount compared to SUNCON's target PER of 19x, acknowledging GADANG's smaller market capitalisation. Nevertheless, we believe that this valuation remains equitable, considering the promising earnings trajectory expected over the next two years. All in all, we raise our SOP-derived target price to RM0.42 (from RM0.22). Upgrade to Hold.

Analyst:
Raymond Ng Ing Yeow 
raymondng@ta.com.my