PETALING JAYA: Gamuda Bhd
looks poised to strengthen its position as a leading regional engineering and infrastructure player, with promising developments on the horizon and a robust order book underpinning its growth trajectory.
The construction giant was on track to achieve an outstanding order book of between RM40bil and RM45bil by end-2025, driven by its expanding presence across key markets and new large-scale project opportunities.
Expressing confidence in Gamuda’s prospects, MIDF Research highlighted that reports of potential delays in the Sydney Metro West (SMW) project might, in fact, present a positive outcome for the group.
In its note, the research house said: “We view that this could be a potential upside for Gamuda as it is likely to pursue variation claims.”
The SMW Western Tunnelling Package, valued at about A$2.57bil, was awarded in March 2022 to Gamuda Australia and its consortium partner Laing O’Rourke by the New South Wales (NSW) Government.
This figure included RM1.2bil of variation orders.
Recent media reports in Australia revealed that two tunnel boring machines had been halted for six weeks due to proximity concerns with the Telstra Exchange building at 213 Church Street.
Although this raised the possibility of additional costs and variation claims that could run into “hundreds of millions of dollars” by Gamuda, tunnelling works had resumed, with NSW Premier Chris Minns and Sydney Metro indicating that the pause would not affect the project’s budget or completion date.
MIDF Research reiterated its “positive” stance, stating, “Potential delays in the SMW project may be boon for Gamuda rather than a downside considering workarounds to avoid a building structure and variation claims for the delay.”
Meanwhile, Gamuda appeared set to mark its maiden entry into New Zealand.
The group, as part of the Together North consortium, was among the three shortlisted for the first section of the Northland Corridor project, comprising a 26 km expressway and twin-bore tunnel.
MIDF Research maintained its “buy” recommendation on Gamuda with a target price of RM5.42.
