GDB Holdings Berhad target price higher than IPO price – Analyst

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KUALA LUMPUR: GDB Holdings Berhad (GDB) made their debut on the ACE Market Bursa Malaysia today.

The company is a fast track construction project delivery partner and is well known as a high-rise builder.

According to research firm Rakuten Trade, the target price of GDB is RM0.45. Stacked against GDB’s initial public offering (IPO) price of RM0.35, Rakuten believes the company is better than their peers.

“GDB remains in net cash position and has a 30 percent distribution dividend polity, translating to 3.4 percent dividend yield,” Rakuten says. “Net profit margins (for GDB) remain commendable at 7 percent and that is higher than its peers,” it says.

GDB was founded in 2013 by former Putrajaya Perdana construction veterans Cheah Ham Cheia and Alexander Lo. The company has built a reputation for completing its projects ahead of schedule.

Despite a relatively short operating history, the company has, however, managed to rake in a solid track record in securing major high-rise construction jobs and have completed four major projects totalling RM645 million.

“Currently, GDB’s orderbook stands at RM845 million providing earnings visibility for the next two years,” adds Rakuten.

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