PETALING JAYA: Gabungan AQRS Bhd
’s pipeline of future projects is crucial to expanding its future order book and solidifying the company’s outlook.
In the infrastructure space, analysts opined that the company is well-positioned to benefit from public sector project rollouts.
A key catalyst includes the Pan Borneo Highway Sabah (Phase 1B), which could award an estimated RM400mil to RM500mil in subcontractor precast supply contracts to Gabungan AQRS’ 49%-owned subsidiary, SEDCO Precast Sdn Bhd.
The firm’s track record in major rail works makes it a strong contender to tender for the reinstatement of five Light Rail Transit Line 3 stations.
The company’s current order book stands at approximately RM245mil, according to RHB Research.
Meanwhile, Gabungan AQRS’ property business has transitioned from progress recognition to asset monetisation.
The research house noted that future earnings may come from the Serena Gambang project in Pahang with a RM382mil gross development value (GDV), which is targeted for launch in the final quarter of this year, and The Peak project in Johor Baru (GDV of RM689mil).
“In the longer run, we could see contribution from its latest property development joint venture with Rising Charm in Bangi (GDV of RM600mil),” RHB Research said.
Gabungan AQRS delivered a robust financial performance for its financial year ended June 30, 2026 with core earnings surging 92.9% year-on-year (y-o-y) to RM25.3mil, driven primarily by cost savings from finalised construction accounts and a high 4Q26 gross profit margin of 72%.
In 4Q26, the company’s core earnings grew 32.7% quarter-on-quarter and 60.6% y-o-y to RM7.8mil, despite a 66.4% y-o-y decline in revenue to RM32.2mil as major projects wound down.
Notably, research houses remain optimistic about Gabunga AQRS’ outlook.
BIMB Securities Research and RHB Research maintained “buy” calls on Gabunga AQRS and an identical target price of 32 sen a share, with the valuation based on a sum-of-parts methodology.
