KUALA LUMPUR: Gamuda Bhd is on track to meet its orderbook target of between RM40 billion and RM45 billion this year, having secured a promising RM38.4 billion so far.
Hong Leong Investment Bank Bhd (HLIB) said there are three remaining data centre tenders worth multibillion ringgit that have yet to be awarded.
The Marinus Link conversion, Penang Light Rail Transit systems package and Australian renewable energy projects are expected to further lift Gamuda’s unbilled work orders this year.
“Gamuda is looking to convert another RM1.4 billion to RM1.8 billion from Marinus Link Stage 1 after being named the preferred contractor recently,” it said.
“With Malaysian projects making up 50 per cent of its orderbook and a majority in the early stages of execution, engineering and construction earnings are expected to climb moving forward,” the firm added.
HLIB kept its “Buy” call on the stock with an unchanged target price of RM6.88.
Public Investment Bank Bhd (PublicInvest) said Gamuda’s near-term earnings are backed by its new project wins this year totalling RM24.9 billion.
“Its pipeline remains encouraging, with an additional RM6 billion to RM10 billion in new wins expected by the end of 2025.
“In the property division, unbilled sales stand at an estimated RM8 billion and it is eyeing another RM5.5 billion in sales in financial year 2026 (FY26),” the firm said.
“This target is underpinned by continued momentum from Vietnam’s quick turnaround projects and new mid-to-upper range launches in Malaysia,” it added.
PublicInvest Research maintained its “Outperform” call on Gamuda with a target price of RM6.20.
Maybank Investment Bank Bhd (Maybank IB) raised its earnings forecasts for the group to reflect higher wins in Gamuda’s engineering and construction segment of RM22.1 billion.
It said the group’s margins will continue to expand on a rising share of higher-margin domestic construction projects.
The investment bank tweaked its FY26 and FY27 earnings for Gamuda up by three per cent and seven per cent, respectively, and introduced FY28 earnings.
It also raised Gamuda’s target price to RM6.17 from RM6.04 previously and kept its “Buy” call on the company.
Meanwhile, RHB Investment Bank Bhd toned down its earnings estimates for Gamuda by seven per cent for FY26 as it expects most projects in the year to still be in the initial phase.
The firm raised its FY27 earnings for the group by four per cent.
It added that Gamuda is potentially looking at a target orderbook of between RM50 billion and RM55 billion by the end of 2026.
“Assuming that its orderbook stands at RM45 billion as of end-2025 with an annual burn rate of RM15 billion, the group needs to replenish RM20 billion to RM25 billion in new jobs to hit its target by December 2026.
“We think that this is achievable, as Gamuda is pursuing tenders totalling up to RM50 billion,” it said, adding that it maintained a “Buy” on the stock with a higher target price of RM7.
© New Straits Times Press (M) Bhd
