PETALING JAYA: Gamuda Bhd
is poised for a new growth phase, with analysts expecting the engineering and construction group to sustain its record order book, secure fresh large-scale projects across multiple markets, and broaden earnings visibility through renewable energy and data centre ventures.
The next two years would be critical, with job wins and property launches forming the backbone of its earnings trajectory, said RHB Research.
It noted Gamuda is potentially looking at a target order book of RM50bil to RM55bil by the end of 2026.
“Assuming that its order book stands at RM45bil as of end 2025 with an annual burn rate of RM15bil, the group needs to replenish RM20bil to RM25bil in new jobs during 2026 to hit the target by December 2026,” the research house said.
“We think that this is achievable, as Gamuda is pursuing tenders totalling up to RM50bil (around RM10bil domestically, RM30bil from Australia, and RM10bil from both Singapore and Taiwan),” it pointed out.
RHB Research also highlighted potential project conversions such as the Direct Sunshine Coast Rail Line, the Hunter Transmission Project and the Capricornia Energy Hub, alongside likely rollouts of data centres in Negeri Sembilan.
It raised its target price for Gamuda to RM7 from RM6.52, and reiterated “buy” on the counter.
Similarly maintaining its “buy” call on Gamuda, CIMB Research lifted its target price for the counter to RM6.70 from RM6.40 after raising its earnings forecasts for Gamuda for the financial years ending July 31, 2027 (FY27) and FY28 on stronger property and construction contributions, despite factoring in higher gearing from land acquisitions in Vietnam.
“We posit that Gamuda is emerging as a serious contender within the renewable energy (RE) market, underpinned by recent strategic collaborations involving solar power plus battery energy storage systems,” it wrote in its report.
However, CIMB Research did not expect any meaningful contributions from the RE endeavours in the near term given that most of them are either at the early execution or planning stage.
HLIB Research kept its “buy” rating on Gamuda, with an unchanged target price of RM6.88.
It stated that 2026 is shaping up to be an eventful year for the company with several projects already lined up with high certainty of conversion.
“Gamuda maintains rolling RM50bil worth of tenders providing sustained visibility for new wins beyond the near-term pipeline,” it added.
HLIB Research also noted that Gamuda is targeting RM5.5bil in property sales for FY26, supported by mid-market launches in Malaysia, and noted Gamuda’s position as the highest bidder for the Chencharu Close government land sale tender in Singapore.
Meanwhile, TA Research expected Gamuda’s earnings momentum to remain intact on the back of a robust outstanding order book and a healthy backlog of unbilled property sales, both of which provide solid revenue visibility over the next three years.
It said margins could benefit from a higher proportion of domestic projects, which offer better profitability compared to overseas jobs.
Reiterating “buy”, TA Research raised its target price on Gamuda to RM6.58 from RM6.43.
CGSI Research also reaffirmed its positive stance with an “add” rating and RM7.30 target price, citing Gamuda’s diversified presence across Malaysia, Taiwan, Australia and Singapore, though it flagged risks from contract award delays and cost inflation.
