PETALING JAYA: Gamuda Bhd
’s expanding footprint in Australia’s renewable energy (RE) sector continues to underpin its growth trajectory, with a strong pipeline of high-value projects likely to boost its long-term earnings visibility and order book.
The group’s early-stage involvement in major infrastructure developments, particularly in the RE space, is increasingly positioning it as a key player in Australia’s clean energy transition, according to RHB Research.
Gamuda’s fully owned Australian subsidiary, DT Infrastructure (DTI), is collaborating with renewable energy developer Aula Energy to deliver early works for the proposed Carmody’s Hill Wind Farm project in South Australia.
The wind farm will feature 42 turbines capable of generating up to 256MW of electricity, as well as a 118MW battery energy storage system.
“We believe Gamuda’s RE exposure in Australia via early contractor involvement (ECI) packages has good prospects, backed by Australia’s National Renewable Energy Priority List, which includes 56 projects,” the research house said.
The early works involve pre-construction surveying and design activities, which are expected to bring the project to a 30% design level by late calendar year 2025, ahead of a final investment decision.
Construction is anticipated to begin in early 2026.
RHB Research noted that this mirrored the successful pathway of Gamuda’s involvement in the 228MW Boulder Creek Wind Farm project, where DTI initially secured the ECI package in March 2024 before landing the A$740mil civil works contract in September the same year.
“Given that Carmody’s Hill Wind Farm project has a higher generating capacity of 256MW compared with the Boulder Creek project, we expect the project value to be at least A$740mil,” the research house noted.
“We estimate that the value of early works should be at least A$15mil, assuming that the works are not more than 2% of projected overall costs of at least A$740mil,” it added.
DTI’s early involvement in the Carmody’s Hill project also strengthens its position to secure the full engineering, procurement, construction, and commissioning contract, enhancing Gamuda’s revenue prospects from the venture.
Gamuda’s growing RE portfolio in Australia also includes its 50:50 joint venture with Ferrovial for the A$1.8bil Oven Mountain Pumped Hydro project in New South Wales.
Additionally, the group was awarded ECI works for the Capricornia Energy Hub Pumped Hydroelectric System in January 2025 – with Gamuda’s share estimated at A$1.5bil.
Despite the developments, RHB Research is maintaining its earnings forecasts as the ECI works fall within its RM25bil job replenishment assumption for the financial year ending July 31, 2025 (FY25).
It has also kept its sum-of-parts-derived target price at RM5.83, implying a 50% upside and reflecting an 8% environmental, social and governance premium.
“We favour Gamuda’s diverse geographical exposure, in addition to the stock being relatively undervalued at FY26 estimated price-earnings multiple of 15.3 times.
“This is similar to the level it was trading at during the 2017 upcycle in the absence of data centre jobs and when the outstanding order book was at only around RM7.8bil versus RM36bil now,” RHB Research said.
Looking ahead, it expects the share of domestic projects in Gamuda’s construction revenue mix to rise to 60% by FY27 from 29% in FY25, driven by data centre, rail, and hydropower segments.
The shift is expected to support stronger net margins and reinforce Gamuda’s position as a key infrastructure player both locally and abroad.
RHB Research maintained its “buy” call on Gamuda, citing a compelling risk-reward profile with a forecast dividend yield of 3% for FY26.
