PETALING JAYA: Pre-sales momentum for Gamuda Bhd
’s properties should rebound over the next two years, following flattish sales in the current financial year ending next month, says CIMB Research.
Gamuda has toned down its net property sales forecast for the financial year ending July 31, 2026 (FY26) by 27% to RM4bil compared to RM5.5bil previously.
This largely stems from launch approval delays for its projects in Hanoi, Vietnam. The revised forecast is in line with FY25 levels.
“Pre-sales trajectory should improve between FY27 and FY28 with RM10bil worth of new launches lined up in FY27, including four new quick-turnaround projects worth RM4.1bil,” the research house said.
CIMB Research also trimmed its new property sales forecasts by 7% to RM4.3bil for FY27 and by 4% to RM4.6bil in FY28.
Another analyst told StarBiz that a faster approval in Vietnam would help to raise Gamuda’s sales in the next one year.
“Vietnam has become a huge growth engine for Gamuda’s property business, accounting for 60% of its international sales.”
With the lower property sales forecasts, coupled with the higher energy and input cost pressures from second half of FY26 (2H26) onwards, CIMB Research has also cut its core net profit forecasts.
For FY27, the core net profit forecast has been lowered by 2% to RM1bil, followed by 4% to RM1.19bil for FY28 and 9% to RM1.54bil for FY29.
“Given Gamuda’s landbank acquisitions in Vietnam, we project group net gearing to surge to 75% in FY27 (breaching the 70% internal ceiling) before normalising to 67% in FY28.
“This follows an estimate RM3bil of cash inflows from the completion of existing Vietnamese developments and progressive billings from ongoing works.
“On the MY Value Up programme, Gamuda is evaluating key parameters like its dividend policy and financial ratios.”
CIMB Research said Gamuda has a “solid” order book outlook. The group’s order book stands at RM52.3bil after winning five jobs worth RM11.5bil between late-April 2026 and May 20, 2026.
Year-to-date in FY26, the clinched new jobs are valued at RM24.9bil in total.
The research house expects Gamuda’s contract momentum to remain visible heading into 2H26.
Based on current churn rates, CIMB Research said Gamuda only needs to convert an additional RM6bil – roughly 40% out of the RM15bil worth of near-term bids – to meet its end-2026 order book target of RM50bil.
Some of the high-conviction bids include hyperscale data centre (DC) jobs and the Northern Perak Water Supply Scheme, additional MRT work scope from Taiwan, the Sunshine Coast railway line, and several potential renewable energy jobs from Australia.
“Notably, Gamuda remains constructive regarding DC contract flows from a leading multinational technology company scaling up its operations in Malaysia.
“This expansion could include up to 25 hyperscale DCs and the establishment of a second DC campus in the country.”
CIMB Research kept its “buy” call on Gamuda with a lower target price of RM6 per share compared to RM6.20 previously.
