PETALING JAYA: Gamuda Bhd
’s widening presence in Australia’s renewable energy (RE) after acquiring an option interest in a solar farm and battery energy storage system project (Bess) is positive for the company’s long-term strategy in growing recurring income, says MBSB Research.
The research house, which has maintained a “buy” recommendation on the stock with an unchanged target price of RM5.60, views Gamuda’s acquisition of an option interest in the Hazelwood North Solar Farm and Bess project in Victoria, Australia, positively.
This strengthens the company’s long-term strategy of expanding recurring infrastructure ownership income streams while creating potential synergies between its renewable energy and data centre (DC) businesses.
The approved project comprises a 450 megawatts (MW) solar farm paired with a four-hour 1,800MW-hour Bess on a 1,100-ha site in the Latrobe Valley.
Construction has been targeted to commence in 2028, with commercial operations expected by 2030.
It noted that Gamuda and its partner Manthos Investments are exploring the development of a co-located DC within the project site.
The concept leverages direct access to renewable power generation and battery storage infrastructure, potentially creating a self-sustaining digital infrastructure ecosystem.
“We view this positively as it aligns with Gamuda’s increasing exposure to both the RE and DC themes, while potentially enhancing the long-term value proposition of the asset,” it said.
“The option acquisition marks the third asset in Australia for the company.
“Management has now raised its ambition to five gigawatts of assets under development, construction and operation by 2031, supported by the company’s balance sheet strength and growing execution capabilities in energy infrastructure.”
It added that the stock remains the top construction pick with an all-time high order book of RM55.4bil and a geographically diversified portfolio for both construction and property.
