CGSI Research expects Gamuda’s big contract wins to include the Bandar Springhill data centre campus.
PETALING JAYA: Gamuda Bhd
is confident of achieving an order book of RM50bil by the end of its financial year ending July 31, 2026 (FY26).
Following a meeting with its management, CGS International (CGSI) Research stated the target will be achieved via bids on domestic (RM10bil worth of bids) projects and international projects in Australia, Taiwan and Singapore (RM40bil in bids).
Gamuda’s order book target implies RM18bil in new wins from January to July of 2026 or RM28bil for FY26 versus CSGI Research’s FY26 new win forecast of RM20bil.
“We estimate that every RM2.5bil increase in new order wins for FY26 should raise our FY27 earnings per share by 3% and target price by 40 sen.
“The rather assured pipeline in 2026 is a combination of local and foreign projects totalling RM14bil,” the research house wrote in a report on Gamuda.
Gamuda’s order book stands at RM39.3bil as of Oct 25, 2025.
CGSI Research expects Gamuda’s big contract wins to include the Bandar Springhill data centre campus, which may house eight to nine data centres, with the awarding of contracts expected in 2026.
Other potential wins include the mechanical and engineering portion for the Puncak Alam data centre project, incremental value for Penang light rail transit where SRS Consortium has already awarded works to Gamuda, Taiwan mass rapid transit, Australia stations and renewable energy (RE)-related projects.
It added Gamuda will bid for RE projects in particular, as the company wants to develop this business for recurring income purposes.
“In the domestic space, its partnership with ERS Energy, one of the largest solar engineering procurement, construction and commissioning (EPCC) companies, will be synergistic to its recent two RE collaboration agreements under Corporate Renewable Energy Supply Scheme giving it potential EPCC values of RM8bil to RM9bil and recurring income from FY29 onwards,” the research house noted.
Gamuda believes by FY30 it would be able to achieve RM200mil net profit from recurring income, on par with what its toll road concession business used to generate before its sale in 2022.
It maintained its “add” call on Gamuda with a target price of RM7.30 a share, with the valuation based on one time market capitalisation/order book, which assumes a sustainable order book of RM42.5bil.
The call is backed by Gamuda’s clear pipeline of potential projects and diversified order book spanning four markets in Malaysia, Taiwan, Australia and Singapore.
