KUALA LUMPUR: Gamuda Bhd
slipped in early trade Tuesday amid a weak broader market, even as it announced a RM2.14bil contract win to build hyperscale data centres in Selangor.
The engineering and construction company fell 1.08%, or six sen to RM5.50, with 1.76 million shares traded at 10.05 am. Year-to-date, the counter has risen over 17%.
Gamuda's wholly-owned subsidiary Gamuda Engineering Sdn Bhd has secured a RM2.14bil contract from Quantum Alpha Sdn Bhd, a unit of Eco World Development Group Bhd, for the construction of hyperscale data centres in Eco Business Park V, Selangor.
The project will commence in 3Q25 and is expected to be completed in 3Q27.
TA Securities said it views this win as a strategic milestone, underscoring Gamuda’s position as a leading contractor in the fast-growing hyperscale data centre segment.
“While management has not disclosed the offtaker, industry chatter points to Google, as Pearl Computing Malaysia Sdn Bhd — widely seen as Google’s regional proxy — has signed a 20-year build-and-lease deal with EcoWorld.
“Drawing parallels with DC1 in Elmina Business Park, which provides about 100MW capacity across 49 acres, we estimate the 92.4-acre Eco Business Park V site could potentially support up to 200MW capacity,” TA said.
It noted that although the award currently excludes the M&E package, this is in line with industry practice, as M&E installation typically follows core and shell progress.
“We believe Gamuda remains the likely frontrunner for the subsequent M&E works, estimated at RM2.5bil to RM3.0bil, with contract finalisation anticipated by 1QCY26.”
It said the group’s outstanding order book has climbed to about RM39.8bil, equivalent to 3.8 times FY24 construction revenue, providing strong earnings visibility.
TA Securities maintained its SOP-derived target price of RM6.43, incorporating a 3% ESG premium backed by its 4-star ESG rating. The research house reiterated its Buy call on the stock.
Meanwhile, Kenanga Research viewed the development as highly positive given the intense competition in data centre tenders.
The win lifts Gamuda’s outstanding order book to RM39.8bil, putting it on track to meet its end-2025 target of RM40bil–RM45bil.
