From Public Invest Research – Gamuda’s RM3.5bn outstanding orderbook, mainly from KVMRT Line 1 (tunneling) worth RM3.4bn and the rest from Double Tracking, which is at its tail end. Construction for KVMRT 1 is progressing well, will all the Tunnel-boring machines (TBMs) delivered. Four TBMs started tunneling, with another 2 expected to be mobillised on site by end-2013. We understand that KVMRT 2 (worth c.RM25bn) is expected to get formal approval by end-2013 and the Group is targeting similar role i.e. underground works and PDP for elevated portion. Gamuda estimates 2-year lead time before it can start building the second line. Separately, we understand that disposal of SPLASH should see closure by 1Q2014. As for the expressway concessions, Gamuda is weighing other options after the proposed sale to the Government seemed to be breaking down.