PETALING JAYA: Gamuda Bhd
’s earnings visibility and international renewable energy (RE) credentials are seen to have strengthened following the company’s latest Australian contract win.
Analysts also project further order-book expansion and sustained participation in large-scale infrastructure and energy transition projects.
MBSB Research noted the latest contracts, involving two solar and battery hybrid projects with a combined value of RM3.1bil, would deepen Gamuda’s RE footprint in Australia, building on recently secured projects such as Jinbi Solar Farm and Boulder Creek Wind Farm.
“We opine that the latest win further reinforces Gamuda’s positioning within Australia’s energy transition infrastructure space,” it highlighted.
“Gamuda had highlighted a four gigawatt (GW) RE pipeline spanning solar, wind, hydro and battery storage projects across Malaysia and Australia.”
MBSB Research maintained its “buy” call on Gamuda, with an unchanged target price of RM5.60, which implied 23 times forecast price-earnings for financial year ending July 31, 2027 (FY27).
Hong Leong Investment Bank (HLIB) Research noted that Gamuda’s FY26 year-to-date (y-t-d) contract wins had climbed to about RM25bil, surpassing its RM20bil assumption for the year.
It said Gamuda remained on course to achieve its RM50bil order-book target by end-2026, with another RM7bil to RM8bil in potential wins in sight.
It identified several near-term opportunities, including the Perak water supply scheme, Penang Light Rail Transit systems package, renewable energy pipelines in Australia and Malaysia, the Xizhi–Donghu Mass Rapid Transit project in Taiwan and data centre tenders.
HLIB Research reiterated its “buy” call on Gamuda, with a slightly higher target price of RM5.41 from RM5.31.
TA Research raised its FY26 job win assumption for Gamuda to RM27.5bil after cumulative wins exceeded its earlier RM20bil forecast.
However, it expected significant earnings contributions from the newly secured projects to emerge only from FY29.
Accordingly, the research house revised its order book burn rate assumptions to better reflect the enlarged execution timeline.
TA Research maintained its “buy” rating but lowered its sum-of-parts-derived target price to RM5.52 from RM5.62 previously.
Phillip Capital Research estimated the Australian solar projects would deliver a pre-tax margin of about 5%, translating into RM156mil over FY26 to FY29. It said the win underscored Gamuda’s expanding footprint in Australia’s renewable energy sector amid the country’s target of achieving 82% renewable generation capacity by 2030.
The brokerage maintained its “buy” rating and target price of RM6.64 for Gamuda.
Kenanga Research said although Gamuda’s y-t-d contract had exceeded its RM22bil assumption, it kept earnings estimates for FY26 to FY27 unchanged because recent major wins were expected to contribute only from FY27. It maintained its “outperform” call on Gamuda with an unchanged target price of RM5.30.
Meanwhile, one analyst told StarBiz that Gamuda has cemented its position as a credible regional infrastructure player with growing exposure to energy transition projects.
