PETALING JAYA: Gamuda Bhd
is riding a wave of growth momentum in both Vietnam and Malaysia, with analysts reaffirming bullish outlooks on the construction and property group as it deepens its overseas footprint and builds recurring income through utilities.
Analysts at Kenanga Research, CGS International Research (CGSI Research), and MBSB Research all maintained positive calls on the stock, with target prices (TP) ranging from RM6.13 to RM7.30, reflecting up to 43% upside potential from its current RM5.14 level.
CGSI Research reiterated its “add” call with a TP of RM7.30, noting Gamuda’s diversified order book across Malaysia, Taiwan, Australia, Singapore, and Vietnam.
MBSB Research added that Gamuda remains its “top pick for the construction sector”, citing a record RM39.3bil order book and growing exposure to utilities and renewable energy.
Vietnam remains the star of the group’s property portfolio, with both CGSI Research and Kenanga Research highlighting the strong demand for Gamuda Land Sdn Bhd’s quick-turnaround projects in Ho Chi Minh City.
“Eaton Park achieved a take-up rate of 95%, with prices rising to US$7,000 per sq m versus US$6,000 in Phase 2 and US$5,300 in Phase 1,” CGSI Research wrote in a report to clients last Friday.
Kenanga Research pointed out that Gamuda Land Vietnam “has emerged as the key growth engine for Gamuda’s property division,” with RM6.17bil worth of launched projects recording an impressive 97% take-up rate, ensuring earnings visibility for the next two years.
Vietnam’s robust economic backdrop further supports this momentum.
Kenanga Research noted the country’s 8.23% gross domestic product growth in the third quarter of financial year 2025 (3Q25), the highest since 2011, alongside strong foreign direct investment (FDI) inflows, with real estate accounting for 21% of total FDI.
The report also said that structural reforms under new leadership had “made business processes smoother and more efficient”.
Gamuda’s pipeline in Vietnam includes eight projects worth RM17.4bil, contributing up to a quarter of the group’s net profit.
The group aims to secure three to five more land deals in 2026, particularly along the city’s expanding metro network, with Gamuda Engineering Sdn Bhd exploring tunnelling opportunities for new mass rapid transit lines.
At the same time, the group’s overseas diversification continues apace, with its Australian unit recently shortlisted for the New England Renewable Energy Zone network operator in New South Wales, a project that underscores its growing role in renewable energy infrastructure.
Back home in Malaysia, meanwhile, Gamuda is building up long-term recurring earnings from utilities and renewable energy, having signed a memorandum of understanding with Perbadanan Bekalan Air Pulau Pinang to supply treated water from Perak to Penang.
The agreement, signed with Perbadanan Kemajuan Negeri Perak, is linked to the Northern Perak Water Supply Scheme.
According to MBSB Research, the development will involve a 40-year concession to “supply treated water to the Kerian Integrated Green Industrial Park and the sale of excess treated water to Penang” beginning in 1Q31.
The RM5bil construction contract under the scheme is expected to be awarded by early 2026, which “will potentially lift the outstanding order book level to RM50bil by the financial year ending July 2026 (FY26),” MBSB Research said.
Furthermore, CGSI Research added that the initiative aligns with Gamuda’s strategy “to build its recurring income base”, targeting RM200mil in annual recurring profit by FY30.
Analysts remain upbeat on the company’s execution capabilities and environmental credentials.
CGSI Research pointed out that Gamuda’s Green Plan 2025 aims to achieve “100% renewable energy utilisation for its offices, project sites, and assets by 2025” and a 40% reduction in non-renewable energy use by 2030.
