2 days ago
Gamuda on track to reach RM40 billion orderbook target
Published on: Tuesday, July 01, 2025
Published on: Tue, Jul 01, 2025
By: Bernama Text Size: Gamuda recorded a higher net profit of RM671.08 million with revenue rising to RM11.13 billion in the third quarter ended April 30, 2025. Kuala Lumpur: Gamuda Bhd is on track to hit its orderbook target of RM40 billion to RM45 billion by end-2025. The expectation is premised on high potential wins in the coming months, namely the Sabah water supply scheme, five data centre (DC) tenders, and early contractor involvement works from renewable energy-related projects in Australia, said RHB Investment Bank Bhd. In a research note on Monday, RHB Investment Bank said the Sabah water supply scheme is estimated to be between RM3 billion and RM4 billion. The five DC tenders are likely to be in Elmina Business Park and an industrial park in Puncak Alam. The outcomes are expected between July and August. 'Further upside may come if the DC awards related to the 389-acre land in Negeri Sembilan were to take place in 2025. 'With an unbilled orderbook of RM34.6 billion as of end-April 2025 and an assumed burn rate of RM1 billion per month, Gamuda needs RM13 billion to 18 billion worth of new wins between now and December 2025 to hit its 2025 outstanding orderbook target,' it said. RHB Investment Bank made no changes to its earnings estimates while maintaining a 'Buy' call with a target price (TP) of RM5.64 per share. Meanwhile, Public Investment Bank Bhd said Gamuda's jobs pipeline remains encouraging with its year-to-date project wins reaching RM15.8 billion. 'Gamuda's DC partners indicated no plans to slow down or delay rollouts, and negotiations for additional DC projects are progressing well,' it added. On the property front, Public Investment Bank said its unbilled sales are now estimated at RM7.7 billion, with a RM5 billion sales target for the 2025 financial year. It maintains an 'Outperform' with unchanged TP of RM5.30 per share. Meanwhile, CIMB Securities Sdn Bhd expects Gamuda to crystallise at least RM7 billion worth of orders from six to seven DC-related bids within the next four months, excluding the proposed Springhill DC hub in Port Dickson. It concurs with RHB Investment Bank that Gamuda's order book target of RM40 billion to RM45 billion remains intact, supported by DCs and a potential expansion into the New Zealand construction space. it also said Gamuda has been shortlisted for Australia's Sunshine Coast Railway in Brisbane and the Northland Corridor Highway in New Zealand. It has a 'Buy' call with a TP of RM5.50 per share. Hong Leong Investment Bank Bhd said award decisions for six to seven DC tenders, placed in the first half of 2025, are expected in the coming two to four months. This includes five multi-billion ringgit tenders for one of Gamuda's existing clients. It is further expecting the Springhill, Negeri Sembilan DC campus to gain traction in 2026 after the impending award cycle, it said. Gamuda was recently awarded a RM1 billion enabling works contract, it said. 'We maintained a 'Buy' rating with a higher TP of RM5.50 per share,' it added. Gamuda recorded a higher net profit of RM671.08 million with revenue rising to RM11.13 billion in the third quarter ended April 30, 2025. At 11 am, Gamuda rose five sen to RM4.70 with 6.07 million shares traded.
