PETALING JAYA: The market is viewing last Thursday’s announcement of the provisional tender results of the 2.94 ha leasehold Chencharu Close land in Singapore’s northern Yishun planned community where a consortium led by construction outfit Gamuda Bhd
emerged the highest bidder as another move by the company to diversify through quick-turnaround projects (QTPs).
Gamuda has a 50% share in the consortium, which includes Evia MCS Pte Ltd and H108 Pte Ltd. While analysts have not made any changes to the company’s earnings estimates for the financial year ending July 31, 2026 (FY26) pending more details, RHB Research said “there is room for valuation to increase” on data centre capabilities as well as involvement in renewable energy projects in Australia and Malaysia that provide an avenue for recurring income growth.
At present, it said Gamuda trades at 23 times FY26 price-to-earnings (PE), a premium to Bursa Malaysia’s construction index’s 14 times average 10-year mean PE.
The research house has maintained a “buy” call on the stock with an unchanged target price of RM6.52.
“We learnt that the planned development at Chencharu Close falls under Gamuda’s portfolio of QTPs. As of end April, QTPs were estimated to have RM11.5bil of remaining gross development value (GDV) – based on effective share spread across projects in Melbourne, London and Vietnam,” it said, adding that the Chencharu Close project has an estimated GDV of RM6bil, which brings the company’s remaining GDV to RM14.5bil based on effective share.
