PETALING JAYA: RHB Research believes that Gamuda Bhd
is on track to achieve its order book target with potential job wins coming from the Sabah water supply scheme, rail network in Queensland and transmission line in New South Wales.
It highlighted that Gamuda would need at least RM20bil to RM25bil worth of new job wins to achieve its targeted order book of RM50bil to RM55bil by year-end.
The research house explained that the estimation of the new job wins was on the assumption of a monthly burn rate of RM1.3bil and a balance order book of RM45bil at end 2025.
It noted that the Sabah water supply scheme was estimated at RM3bil to RM4bil, Direct Sunshine Coast Rail Line in Queensland at A$5.5bil to A$7bil and the Hunter Transmission project (transmission line packages).
“We expect Gamuda’s second quarter of financial year 2026 (2Q26) core earnings to be at RM220mil to RM240mil, translating to year-on-year (y-o-y) growth of between 4% and 13.7%, backed by higher progress of existing projects such as the Sydney Metro West project.
“While 60% to 70% of Gamuda’s order book is in the early stages, we think some ongoing jobs nearing completion (for example Coffs Harbour Bypass and Sydney Metro West Tunnelling package) could see provisions being restored, leading to margin recalibration.”
Meanwhile, the research house estimated that solar-related jobs would be worth at least RM3bil in total, and should help fill the gaps from any delays in early contractor involvement works related to pump hydro projects, which usually take longer to be converted into full-fledged contracts.
Gamuda was recently selected as the preferred bidder by Edify Energy for two solar and battery energy storage system (Bess) projects in Queensland – the Smokey Creek and Guthrie’s Gap project (720MWp solar and 600MW Bess) and the Ganymirra and Majors Creek project (360MWp solar and 300MW Bess).
RHB Research believes data centre (DC) jobs will continue being a meaningful domestic contributor to the order book with an 8% to 10% composition in the group’s total order book as of end 2025.
“DC build-ups are expected to remain in demand with Microsoft’s South-East Asia Region 3 in November 2025, which likely spans 370 acres of land in Johor, in our view,” it added.
RHB Research has kept its “buy” call on the counter with a target price of RM6.26.
“We view that Gamuda deserves to trade at a premium to the Bursa Malaysia Construction Index not just for its DC construction capabilities, but also for its involvement in renewable energy projects in Australia and consistent domestic exposure,” it explained.
It added that a major catalyst would be Gamuda securing a job related to Australia’s high-speed rail (HSR).
The Australian government, on March 3, issued seven major tenders for an HSR connecting Newcastle and Sydney.
