PETALING JAYA: Gamuda Bhd
’s all-time high order book of RM35.8bil and geographically diversified portfolio for both construction and property will continue to anchor its earnings prospects, analysts say.
MBSB Research said Gamuda’s strategy in Australia is pivoting as the infrastructure pipeline there begins to change towards renewable energy.
“We met with the Gamuda Australia team during our recent visit to Sydney and we remain optimistic on its prospects Down Under in terms of renewable energy, infrastructure and its potential entry into New Zealand,” the research house said in a report yesterday.
MBSB Research said Gamuda’s focus on the clean-energy sector stems from the idea that owning and developing assets, rather than solely acting as a contractor, creates greater value across the project lifecycle.
The research house said, by taking an equity position, Gamuda can influence project design from the outset to ensure constructability, optimise layouts, and balance commercial returns with social-licence considerations.
“This approach mitigates risks often pushed onto engineering, procurement and construction (EPC) contractors in short tender windows, while also strengthening community engagement, which has become an increasingly critical factor in securing development approvals for large-scale renewable projects.
“Part of Gamuda’s strategy would also be to pare its stakes in these clean-energy assets after the defect-liability period. This in our view allows them to recycle their capital into new projects while maintaining a minimal stake to enjoy the recurring income,” MBSB Research said.
The research house said the group is also rapidly expanding its footprint in the utilities space, leveraging its expertise in construction and its financial strength to undertake asset ownership in a bid to rebuild its recurring income stream, something that Gamuda enjoyed before exiting the toll concession business in 2022.
Gamuda’s tender activity in Australia is expected to reach an all-time high of A$22.47bil in its financial year ending July 31, 2026 (FY26), almost double the amount of A$11.66bil in FY25, coming from the six main sectors of road, rail, water, transmission, energy balance of plant and hydro.
Significant projects include the A$2.90bil Capricornia Pumped Hydroelectric Storage System, the A$1.50bil Oven Mountain Pumped Hydro and the A$3.7bil New England Renewable Energy Zone Transmission Project.
“The group has also identified tender opportunities of up to A$14.87bil in FY27 and A$8.11bil in FY28. Meanwhile, subsidiary DT Infrastructure Pty Ltd will be tendering for the A$3.9bil Parramatta Light Rail Stage Two. It was previously involved in Stage 1, in a joint venture with CBP Contractors,” the research house said.
MBSB Research said Gamuda’s potential entry into New Zealand could not have come at a better time as the group has identified a healthy pipeline of up to four infrastructure public-private partnerships (PPP) that could be rolled out in the next 18 months.
“Gamuda Engineering was recently shortlisted for Section One of the Northland Corridor in New Zealand, which is estimated to cost NZ$3.8bil. Under the Together North consortium, it is teaming up with Plenary, Webuild, WBCA and Service Stream. They are competing against two other consortiums, and the expected contract award is 2026. This is a PPP contract and Gamuda is considering taking an equity position in it,” the research house said.
MBSB Research said Gamuda remains its top pick for the construction sector. The research firm has a “buy” call on the company with a target price of RM6.35.
