Latest news with #NorthernPerakWaterSupplyScheme
The Star
18-07-2025
- Business
- The Star
Gamuda JV to develop Perak water infrastructure
The project forms part of the Northern Perak Water Supply Scheme, a strategic initiative with a total estimated development value of RM5bil. PETALING JAYA: Gamuda Bhd and Perbadanan Kemajuan Negeri Perak (PKNPk) have been appointed by the Perak state government to jointly develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak. The project forms part of the Northern Perak Water Supply Scheme (NPWSS), a strategic initiative with a total estimated development value of RM5bil. Introduced by the Perak state and federal governments, the scheme aims to address long-standing water shortages for irrigation, domestic and industrial use in the region. According to the terms of appointment, the Gamuda-PKNPk joint venture (JV) will undertake the infrastructure development and operations on a minimum 40-year concession basis. As part of the project scope, the JV will be responsible for supplying treated water to the upcoming Kerian Integrated Green Industrial Park, while any excess treated water will be sold to the neighbouring state of Penang. The NPWSS scheme involves the transfer of 1,500 million litres per day (MLD) of raw water from Sungai Perak to the Bukit Merah Dam. Of this amount, 500 MLD will be allocated to meet the immediate irrigation needs of Northern Perak, with the remainder to be treated and channelled for domestic and industrial use across the state. The privatisation agreement is expected to be finalised within 90 days from the date of appointment to facilitate timely implementation of the scheme, which is targeted for completion by 2030. The project is still subject to approvals from the relevant regulatory authorities. In a statement, Gamuda Engineering Sdn Bhd executive director Faris Mohd Yusof said the approval marked a progressive step towards the realisation of Northern Perak's long-term water security strategy by 2030. 'We are pleased to have been entrusted with the opportunity to jointly develop a key component of the NPWSS scheme for our home state of Perak. 'We are committed to ensure the critical delivery of water for the state with a focus on local workforce and community development,' he said. Faris added that the project affirms the group's expertise in water-related infrastructure, citing past projects such as the Skim Bekalan Air Fasa 3 Sungai Selangor and the Smart Tunnel. He added that Gamuda's experience in water treatment plants, distribution networks and tunnelling positions the group well to deliver the essential infrastructure. Gamuda has also been involved in other major water infrastructure developments. These include the RM4bil Sungai Perak Raw Water Transfer Scheme, slated to begin construction in 2026, and the RM1.97bil Sungai Rasau Water Supply Scheme Stage 1, currently ongoing with completion expected by mid-2025. The group also holds a 75% stake in the Ulu Padas hydroelectric project in Sabah, valued between RM3bil and RM4bil, with a scheduled commercial operation in 2030.
The Star
17-07-2025
- Business
- The Star
Gamuda's latest job win to exceed order-book target
CIMB Research said the NPWSS project provides Gamuda with the base to rebuild its water-related recurring earnings streams. PETALING JAYA: Gamuda Bhd 's latest contract win offers recurring income and a turnkey contract role and helps its total order book exceed its target for 2025. CGS International (CGSI) Research estimates the engineering and construction group's order book for the year could stand at about RM47bil, above its in-house target of RM40bil to RM45bil, after it secured a potential RM5bil worth of water treatment and distribution infrastructure jobs in Kerian, Northern Perak, in a joint venture with Perbadanan Kemajuan Negeri Perak (PKNPk). The project is part of the broader Northern Perak Water Supply Scheme (NPWSS), which aims to transfer 1.5 million litres per day (mld) of raw water from Sungai Perak to the Bukit Merah Dam. Meanwhile, 500 mld of the supply will be allocated to address the immediate irrigation needs of Northern Perak, with the balance to be made available to meet the domestic and industrial demands of Perak. Excess treated water will be sold to Penang. Analysts think the contract win offers Gamuda not just engineering opportunities as the turnkey contractor but also recurring income over some four decades as the developer of NPWSS. CGSI Research noted a PKNPk-Gamuda JV (50:50) will undertake this project on a privatisation basis with a minimum 40-year operation period and take its year-to-date job wins to RM23.4bil. 'Gamuda estimates the pre-tax margin for the project to be around 10% to 12%, within the range of its Malaysian infrastructure projects. 'This will be positive for improvement in its construction margin trajectory, where we expect a more meaningful recovery in financial year 2026 (FY26). 'This is when its local projects (39% of order book as of June 2025) move away from the shallow part of the S-curve recognition,' the research house stated in a report on the company. It added the award could be seen as a signal that the government may look to expedite project flows. Furthermore, CGSI Research maintained its 'add' call on the stock with a sum-of-parts (SOP) derived target price (TP) of RM6 a share. RHB Research, however, believes any formal awards pertaining to the NPWSS project will likely take place next year. Hence, it has made no changes to its earnings estimates for Gamuda, as there were no changes in its order book while awaiting further details such as tariffs, project tenure and approval from the relevant authorities related to the NPWSS project. It made no changes to its 'buy' call on Gamuda nor to its SOP-derived TP of RM5.86 a share. CIMB Research said the NPWSS project provides Gamuda with the base to rebuild its water-related recurring earnings streams following the disposal of its 40% stake in Syarikat Pengeluar Air Selangor Sdn Bhd several years ago. It kept its 'buy' recommendation on Gamuda with an unchanged TP of RM5.50 a share.
The Star
17-07-2025
- Business
- The Star
Trading ideas: Gamuda, Kawan Renergy, Pekat, Warisan TC, Tan Chong, Avaland, Greenyield, UUE, CelcomDigi, Solarvest, Camaroe
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. The Perak state government has appointed a JV between Gamuda Bhd and Perbadanan Kemajuan Negeri Perak to develop and operate water treatment and distribution infrastructure in Kerian, Northern Perak — a key component of the RM5bn Northern Perak Water Supply Scheme. Kawan Renergy Bhd has secured a RM38.8mn contract from Gas Malaysia Energy Advance Sdn Bhd for the construction of a gas turbine co-generation system in Port Klang. Pekat Group Bhd plans to raise up to RM84.7mn by issuing 66.2mn new shares, or 10% of its total shares, a move that will boost its market value over RM1bn. Warisan TC Holdings Bhd expects to record a net gain of RM1.9mn from the sale of an industrial property in Selangor to Leisure Event Sdn Bhd, a wholly-owned subsidiary of property developer Avaland Bhd , for RM49mn. Tan Chong Motor Holdings Bhd has been slapped with an unusual market activity query by Bursa Malaysia Securities after the automotive assembler and distributor's share price surged to a near one-year high. Avaland Bhd announced that Phase 1 of Avalon with a GDV of RM151mn, comprising 166 units of Balinese-inspired double-storey homes located within its Cybersouth township development, is fully taken up. Greenyield Bhd has, via its wholly-owned subsidiary, disposed of a 10,660 sqm parcel of vacant leasehold industrial land in Kuala Langat, Selangor, to Filtermation (MFG) Sdn Bhd for RM8mn. UUE Holdings Bhd has announced a bonus issue on the basis of one new share for every two existing shares held along with plans to diversify into renewable energy facilities development. CelcomDigi Bhd has launched its new flagship 'Life' stores at The Gardens Mall and Sunway Pyramid, marking a new step in its retail journey. Solarvest Holdings Bhd has appointed Daniel Bernd Ruppert as its chief investment officer. Camaroe Bhd, an integrated aquaculture group specialising in the farming and processing of black tiger prawns, has received approval from Bursa Malaysia to be listed on the ACE Market of Bursa Securities.
Malaysian Reserve
17-07-2025
- Business
- Malaysian Reserve
Gamuda shares rise in early trade after securing Perak water project
GAMUDA BHD'S shares rose in early trade after the group secured a water treatment project from the Perak state government. At 10.15 am, the counter gained six sen to RM5.09, with a total of 1.82 million shares traded. Gamuda via its 50 per cent-owned Gamuda-Perak State Development Corporation (PKNP) joint venture (JV) has secured the letter of appointment from the Perak state government to jointly develop and operate water treatment and distribution infrastructure in Kerian, Perak. This forms part of the broader Northern Perak Water Supply Scheme, which carries an estimated development cost of RM5 billion. In a research note today, Hong Leong Investment Bank Bhd (HLIB) anticipated that Gamuda's total investment in the JV could come to approximately RM500 million over the next few years. 'Based on an estimated total development cost of RM5 billion, we are estimating a potential construction contract value of RM4 billion to be converted in the calendar year 2026. 'Upon completion, this water project would serve as Gamuda's second recurring income source domestically, to be complemented by the Ulu Padas hydro project in Sabah,' it said. HLIB maintained a 'buy' call on Gamuda with a target price (TP) of RM5.70 per share. Meanwhile, Public Investment Bank Bhd viewed the JV development positively as Gamuda stands to benefit from two income streams, construction revenue and recurring income upon the project's commercialisation. 'However, we keep our forecasts unchanged, pending necessary approvals and finalisation of the privatisation agreement. 'Therefore, we maintain an 'outperform' call on Gamuda with an unchanged TP of RM5.60 per share,' said the investment bank in a separate note today. Furthermore, CGS International Securities Malaysia Sdn Bhd said that while Gamuda maintains its order book target of RM40 billion to RM45 billion by the end of 2025, there is a chance that it may exceed the target. It said that achieving the award by the end of 2025 would bring its year-to-date wins to RM23.4 billion. Thus, the company estimates that it will end 2025 with a cumulative order book of RM47 billion, factoring in a burn rate of RM1 billion per month and the more visible local wins. 'From a broader local construction sector perspective, we also view this award as a signal that the government may look to expedite project flows. 'The key events to watch are the 13th Malaysia Plan to be tabled end of July 2025 and the Budget in October 2025,' it said in a note separately. Hence, CGS International reiterated its 'add' call with a TP of RM6.00 per share for Gamuda. — BERNAMA
The Star
16-07-2025
- Business
- The Star
Gamuda tie-up with PKNPk secures Perak water treatment project
The Rasa and Bukit Badong water treatment plants - examples of Gamuda's proven expertise and extensive track record in delivering complex water infrastructure in Malaysia and Vietnam KUALA LUMPUR: Gamuda Bhd in partnership with Perbadanan Kemajuan Negeri Perak (PKNPk) has accepted an appointment by the Perak state government to develop and operate water treatment and distribution infrastructure in Kerian. In a statement, the construction and engineering group said the project forms part of a strategic initiative by the Perak state and Federal governments to address long-standing water shortages for irrigation, domestic and industrial use in the region. The initiative - dubbed the Northern Perak Water Supply Scheme (NPWSS) - has a total development value of RM5bil. "The NPWSS scheme is designed to transfer 1,500 million litres per day of raw water from Sungai Perak to the Bukit Merah Dam. "Of this total, 500MLD of raw water will be for the immediate irrigation needs of Northern Perak with the balance made available for treatment to meet the domestic and industrial demands of the State," it said. According to Gamuda, its joint venture with PKNPk, the state's development agency, will undertake the development and operation of water treatment and distribution infrastructure in the Kerian district in Northern Perak. It will also supply treated water to the Kerian Integrated Green Industrial Park (KIGIP) and sell the excess treated water to Penang. The undertakings will be on a privatisation basis with a minimum 40-year operation period, it added. The development is subject to approvals from the relevant regulatory authorities. Gamuda Engineering executive director Faris Mohd Yusof said the approval marks a progressive step towards the realisation of Northern Perak's long-term water security strategy by 2030. "We are pleased to have been entrusted with the opportunity to jointly develop a key component of the NPWSS scheme for our home state of Perak. "We are committed to ensure the critical delivery of water for the State with a focus on local workforce and community development," he added.
