31-07-2025
Gamuda on track to solid earnings with transit work
CIMB Research said the two shortlisted transit-related bids potentially widen Gamuda's scope to garner more jobs under Sydney Metro West.
PETALING JAYA: Gamuda Bhd 's earnings prospects continue to be supported by its growing order book and strengthening tender book momentum.
CIMB Research raised its forecasts for Gamuda's new job wins in the group's financial year 2026 (FY26) and FY27 by 10% and 25% to RM22bil and RM25bil, respectively, as the group has been shortlisted for two transit-related developments in Australia.
Sydney Metro announced on July 14 that a joint venture between Gamuda (through Gamuda Engineering Pty Ltd-Gamuda Australia) and MTR Corp Australia is among three consortia shortlisted for the integrated station and precinct development in Sydney Olympic Park.
The project includes the design of a new metro station, its surrounding precinct, and two buildings adjacent to the Sydney Olympic Park metro station. It will be awarded by mid-2026.
'This is the second time Gamuda has made the shortlist for a transit-related project, after also making the cut in late June for the Parramatta Central Business District area via the Gamuda-Billbergia-MTR Corp Australia joint venture,' the research house said in a report yesterday.
CIMB Research said the two shortlisted transit-related bids potentially widen Gamuda's scope to garner more jobs under Sydney Metro West (SMW) — touted as Sydney's largest metro rail project at a projected cost of A$25.3bil or aboutRM69bil.
SMW features a 24km underground rail line that connects the central business districts of Sydney and Parramatta.
Currently, Gamuda is engaged as main tunnelling contractor for the SMW Western Tunnelling Package linking Sydney Olympic Park and Westmead through a joint venture with construction company Laing O'Rourke.
'Gamuda is also part of Metrovista – one of two shortlisted consortia to build five standalone metro stations for SMW; Gamuda's effective share of works is about RM6bil. The other two members of the consortium are 100%-owned Australian unit DT Infrastructure and BESIX Watpec.
'By extension, the the projects pave the way for Gamuda to secure the integrated station development rights within Sydney Olympic Park and the Paramatta central business district,' CIMB Research said.
The research house said Gamuda's prospects in Australia are boosted by the strong backing of MTR Australia, fully owned by Hong Kong's world-renowned rail operator, MTR Corp, which specialises in the 'rail-plus-property' model.
MTR Australia, which previously played a key role as delivery partner for Sydney Metro Northwest, is currently delivering the trains, systems, operations and maintenance package for Sydney Metro City and Southwest.
MTR Australia also has stakes in the operating companies of the Melbourne Metropolitan rail network and Sydney Metro Northwest.
'Meanwhile, Gamuda has a proven track record of delivering major rail infrastructure projects, having played a leading role during the construction of the Kajang and Putrajaya Mass Rapid Transit Lines,' CIMB Research said.
The research house estimates Gamuda's order book to have grown to RM37.2bil as of early July and is on track to meet the group's target of RM40bil to RM45bil for the end of this year.
'More importantly, Gamuda's tender book momentum has not shown any signs of abating,' CIMB Research added.
Apart from transit-related opportunities in Australia, Gamuda aims to clinch at least RM7bil worth of orders from six to seven data centre–related bids within the next three months and is in contention to add another RM4bil each from the Ulu Padas and Northern Perak water supply schemes, the research house noted.
Given Gamuda's highly visible tender pipeline, the research house raised its FY26 and FY27 forecast new contract win targets for Gamuda by 10% and 25%, respectively, to RM22bil and RM25bil (from RM20bil each).
CIMB Research maintained a 'buy' on Gamuda with a higher target price of RM6.40 from RM5.50 which is based on a 15% discount to revised net asset value.
