PETALING JAYA: Analysts remain optimistic on Gamuda Bhd
’s job prospects, saying that its recent share price weakness presents a buying opportunity.
“We believe the earnings impact, in the worst case, will not be material as data centre jobs only account for 7% of Gamuda’s current outstanding order book of RM37bil.
“Our financial year ending July 31, 2025 (FY25), to FY26 new job win assumption of RM17bil to RM20bil includes RM3bil each from data centre projects,” said Kenanga Research.
The research house noted that Gamuda and its joint-venture (JV) partner Ferrovial Construction had been appointed for the second time as Early Contractor Involvement (ECI) partners for a pumped hydro project in Australia.
With the two pumped hydro projects and a metro project, SLR East-Linewide, its potential order book in Australia this year is around RM20bil.
Under the fresh five-month ECI deal, Gamuda’s JV will develop an engineering, procurement and construction framework for delivering the project, which is called Capricornia Pumped Hydroelectric Storage.
Hong Leong Investment Bank (HLIB) viewed the development as cementing yet another order book expansion year.
It is keeping forecasts and maintaining a “buy” call on the stock with an unchanged target price of RM5.50 per share.
“We maintain a ‘buy’ rating with unchanged target price of RM5.50, based on a 10% discount to our sum-of-parts value of RM6.12.”
HLIB remained positive on the stock, given its order book upcycle from high-certainty pipeline and growing leverage into Australian renewable energy space.
