Gamuda drives further with New Zealand highway shortlisting
KUALA LUMPUR: The shortlisting of Gamuda Bhd's consortium for a New Zealand highway project is expected to boost the group's overseas construction portfolio, said RHB Investment Bank Bhd (RHB Research).
Gamuda, via the Together North consortium comprising four other members, has been shortlisted for New Zealand's Northland Corridor Highway (NCH), covering the Warkworth to Te Hana section, the NZ Transport Agency.
"Should the consortium succeed as the preferred bidder, the project would be a good addition to Gamuda Bhd's overseas construction exposure.
"It currently covers Australia, Taiwan, and Singapore, and accounts for about 50 to 60 per cent of its total order book," RHB Research said in a note.
The firm noted that two other consortia — Northway and Go>North — have also been shortlisted for the Warkworth to Te Hana section of the NCH.
The first stage of the project includes a 26km four-lane expressway from Warkworth to Te Hana, which connects to the new Pūhoi to Warkworth expressway.
The indicative design for Warkworth to Te Hana includes an 850m-long twin-bore tunnel in the Dome Valley and three interchanges located at Warkworth, Wellsford, and Te Hana.
The NZ Transport Agency had estimated the capital cost for the Warkworth to Te Hana section of the NCH at between NZ$2.9 billion and NZ$3.8 billion in 2023.
The preferred bidder for the project, which will be carried out under a public-private partnership model, is expected to be confirmed in early 2026.
If contract talks go well, the award is scheduled for mid-2026, with detailed design and early construction expected to begin later that year.
According to RHB Research, Gamuda now has four shortlisted jobs overseas — one in New Zealand and three in Australia — with a cumulative value of approximately RM30 billion.
This figure does not yet account for Gamuda's effective share in the respective consortiums it is part of.
RHB Research added that Gamuda also holds early contractor involvement packages for various renewable energy projects in Australia.
These packages typically have higher conversion rates into full-fledged contracts, with at least A$3 billion in total value across three projects.
Overall, RHB Research has maintained a "buy" call on Gamuda with a target price of RM5.64.
The firm also believes that Gamuda deserves to trade at a premium to the Bursa Malaysia Construction Index, not only for its data centre construction capabilities but also for its involvement in renewable energy projects in Australia.
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