As at end-October, Gamuda’s order book stood at RM37bil, slightly below its end-2025 target of RM40bil to RM45bil.
PETALING JAYA: Gamuda Bhd
’s order book momentum and overseas contract pipeline continue to underpin analysts’ positive stance on the construction group, despite a softer financial quarter and delays in major job wins.
CGS International (CGSI) Research said Gamuda’s first quarter ended Oct 31, 2025 (1Q26) core net profit of RM213mil – up 4% year-on-year – made up 15% of both its and consensus’ full-year forecasts.
The research house deemed the results as “modest but within expectations”.
As at end-October, Gamuda’s order book stood at RM37bil, slightly below its end-2025 target of RM40bil to RM45bil.
With several weeks remaining in December, CGSI Research said the group expects “lumpy” awards, mainly overseas, to close this gap.
CGSI Research said Gamuda reiterated its three-year revenue compound annual growth rate target of 30%, projecting revenue to reach RM35bil in the financial year ending July 31, 2028 (FY28).
Gamuda has set a 2026 order book target of RM50bil, which the research house said implies RM30bil wins between December 2025 and December 2026.
“We estimate every RM2.5bil increase in new order wins for FY26 should raise our FY27 earnings per share by 3% and target price (TP) by 40 sen,” the research house noted.
CGSI Research maintained its “add” call on the company with a TP of RM7.30 a share premised on one times market capitalisation-to-order book, assuming a sustainable order book of RM42.5bil – the midpoint of Gamuda’s 2025 guidance.
The research house also flagged rising Gamuda’s balance-sheet leverage, with net gearing rising to 0.62 times at end-October from 0.53 times at end-July.
It expects gearing to rise further to 0.7 times by the first quarter of financial year 2026 due to potential land acquisitions in Ho Chi Minh City (HCMC), Vietnam.
“With stronger billings and collections for existing HCMC projects, this will lower its net gearing by FY27 to FY28,” it said.
Maybank Investment Bank Research (Maybank IB) similarly maintained its “buy” call on Gamuda but trimmed its TP to RM5.79 a share from RM6.17, citing delays in contract execution following the near-completion of major Australian projects.
The research house said Gamuda’s 1Q26 job wins of RM4bil made up 16% of its full-year assumption, though the group remains confident of meeting its RM40bil to RM45bil order book target by year-end and securing RM25bil in fresh wins in FY26.
“Going forward, Gamuda expects job wins to catch up in the first half or second half of FY26,” it said.
Due to the delayed execution of job wins, Maybank IB cut its FY26 and FY27 earnings forecasts for Gamuda by 13% and 6%, respectively, but raised its FY28 forecast by 11%.
MBSB Research, however, maintained its “buy” call with an unchanged TP of RM6.35 a share on Gamuda, naming the company as its top pick in the construction sector.
It cited the group’s strong RM37bil order book, and geographically diversified construction and property operations.
“Gamuda 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 the group enjoyed before exiting the toll concession business in 2022,” it said.
TA Research remained optimistic as well, noting Gamuda’s RM8bil in unbilled property sales as at end-October – equivalent to 2.2 times its FY25 property revenue – provides healthy earnings visibility.
It expects the group to secure additional large-scale projects in 2025 and 2026, supported by its strong execution track record and entrenched position in high-complexity infrastructure works.
The research house said earnings visibility remains firm, supported by a sizeable outstanding order book and unbilled property sales.
“Earnings mix is expected to shift toward higher-margin domestic projects as new domestic contract flows accelerate and domestic project progress ramps up along the S-curve (currently they are mostly at early stages).”
The research house maintained its TP of RM6.58 per share on Gamuda.
