PETALING JAYA: Gamuda Bhd
continues to strengthen its earnings visibility as fresh contract wins reinforce confidence in its ability to sustain a sizeable construction order book.
The group is also seen as well positioned to capture further opportunities across data centres, transport infrastructure and overseas markets, supporting growth into the coming financial years.
RHB Research noted the latest award, amounting to RM1.71bil to build a hyperscale data centre in Port Dickson, Negri Sembilan, would lift Gamuda’s outstanding order book to about RM54bil, keeping the company comfortably within reach of its internal target despite ongoing project execution.
The research house estimated the group would need to replenish another RM2.5bil to RM7.5bil worth of jobs over the remainder of 2026 to maintain an order book of RM50bil to RM55bil by year-end.
“We think this is achievable, as Gamuda is pursuing tenders totalling up to RM50bil (RM10bil domestically, RM30bil in Australia, and RM10bil from both Singapore and Taiwan),” RHB Research said.
It maintained its “buy” call on Gamuda, with a lower target price of RM6.02 from RM6.11. This followed the brokerage trimming its earnings forecasts for Gamuda by 1% each for the financial year ended July 31, 2026 (FY26) to FY28.
Kenanga Research, which described Gamuda’s latest contract win as an encouraging start to FY27, said: “We view this win positively as it reinforces Gamuda’s strong competitive position in the data centre segment.” Including the latest award, Gamuda’s outstanding order book has elevated to RM54bil, while year-to-date order book replenishment has reached 66% of its 2026 target of RM20bil, keeping it well on track to meet its full-year target, it added.
Kenanga Research reiterated its “outperform” rating with an unchanged target price of RM5.30.
MBSB Research maintained its “buy” recommendation and RM5.60 target price, keeping Gamuda as its preferred construction stock.
“Gamuda remains our top construction pick, supported by its record RM54bil order book and improving earnings visibility,” it said.
With around 75% of projects still in mobilisation and early execution, the research house expects FY27 to mark the beginning of a stronger earnings upcycle.
It also sees further upside from one to two additional Port Dickson data centre contracts worth RM1bil to RM2bil each, while estimating the broader campus could generate RM10bil to RM12bil of construction opportunities over the next one to two years.
Hong Leong Investment Bank (HLIB) Research maintained its “buy” call with an unchanged target price of RM5.27, saying the latest letter of award supports its positive long-term earnings outlook.
“While earnings growth in FY26 has been relatively muted due to the early-stage execution of a large proportion of its order book, we expect earnings to accelerate from 2027 onwards as these projects enter the S-curve and higher-margin contributions begin to crystallise,” the brokerage said.
HLIB Research added that data centre projects now account for about 10% of Gamuda’s RM54bil unbilled order book and believes successive development phases at the Port Dickson site could be awarded after water infrastructure works are completed.
Meanwhile, TA Research trimmed its earnings forecasts by 1.4% to 1.7% for FY26 to FY28 after incorporating actual job wins, but remained positive on the group’s outlook.
“At the current outstanding order book rate, this places Gamuda firmly on track to achieve its internal outstanding order book target of RM50bil by end-2026,” it said.
“We believe this replenishment target is achievable, backed by its robust tender book of more than RM50bil,” it added.
TA Research maintained its “buy” recommendation while lowering its target price to RM5.42 from RM5.52.
Gamuda on Wednesday announced construction of the RM1.7bil data centre project in Port Dickson, which is scheduled to commence in the third quarter of 2026 (3Q26). It is targeted for completion in 2Q28.
One analyst told StarBiz that Gamuda’s diversified pipeline of projects continues to position it as one of the strongest long-term growth stories in the construction sector.
“With multiple domestic and overseas opportunities in sight, it is well placed to sustain earnings momentum and deliver steady order book growth over the next few years,” he added.
