PETALING JAYA: GDB Holdings Bhd
’s latest building contract for the 60-storey Wolo Hotel & Residences Mont Kiara lifts the company’s order book size to beyond RM1bil.
Apex Securities Research calls it a “step-change rather than a routine replenishment”, adding that the new contract extends earnings visibility to the financial year ending Dec 31, 2030 (FY30).
“Applying an estimated 8% profit after tax (PAT) margin, the project could contribute approximately RM35.2mil in cumulative PAT spread over FY26 to FY30.
“Execution risk appears manageable, given GDB’s track record of on-time or early delivery – Metrohub 4, for instance, was handed over 45 days ahead of schedule in July 2026 – and its continued addition of landmark Kuala Lumpur developments to its completed portfolio,” the research house said.
As a result of the latest contract win, Apex Securities’ earnings forecasts for FY26, FY27 and FY28 have been raised by 2%, 5.9% and 7.1%, respectively.
“Meanwhile, following the new contract award, GDB’s FY26 order book replenishment has exceeded our initial RM900mil assumption.
“We have raised our FY26 order book replenishment assumption to RM1.3bil, while keeping our FY27 and FY28 assumptions unchanged at RM900mil each.”
Apex Securities further pointed out that GDB’s tender book remains healthy at RM10bil, comprising prospective projects spanning industrial, data centre, commercial, mixed-use, infrastructure, and residential sectors.
Malaysia’s construction sector continues to benefit from several structural tailwinds: sustained government infrastructure spending, ongoing high-rise and mixed-use development in the Klang Valley, and rising demand for industrial and logistics space tied to eCommerce growth.
The data centre segment has also emerged as a fast-growing vertical.
This is as regional cloud and artificial intelligence infrastructure investment accelerates, giving contractors with the right track record and certifications a broader set of growth avenues beyond traditional residential building.
Within this backdrop, GDB’s expanding tender book and diversification into infrastructure, including the prospect of Sabah and Sarawak projects, position it to participate more meaningfully in this broader opportunity set, rather than remaining reliant on the high-rise residential cycle alone, according to Apex Securities.
The research house has maintained its “buy” call on the stock, and raised the target price to 60 sen from its 57 sen previously.
