PETALING JAYA: Gamuda Bhd
’s strong foothold in the data centre (DC) construction segment, backed by a record RM59.6bil order book, is expected to provide robust earnings visibility over the next three to four years, according to analysts.
Kenanga Research has maintained its “outperform” call on Gamuda with an unchanged target price (TP) of RM5.30, while TA Research has retained its “buy” recommendation with a TP of RM5.42.
Both research houses highlighted the group’s latest RM3.57bil win for two hyperscale DCs in Port Dickson as a positive development.
Kenanga Research said: “Having clinched all four DC packages from the same developer on the campus, this underscores Gamuda’s technical capabilities and competitive edge in the high-tech industrial space.”
The contracts, secured by wholly-owned subsidiary Gamuda Engineering Sdn Bhd, comprise RM1.79bil and RM1.78bil packages, covering site infrastructure, core and shell construction, as well as mechanical, electrical and plumbing fit-out works.
Construction is scheduled to begin in the fourth quarter of calendar year 2026 (4Q26), with completion targeted for 3Q28 and 4Q28, respectively.
Kenanga Research said the wins lifted Gamuda’s financial year 2027 (FY27) year-to-date (y-t-d) job wins to RM6.93bil and its outstanding order book to a record RM59.6bil, putting it well on track to surpass its RM50bil target by end-2026.
TA Research was similarly upbeat, estimating that the latest contracts could generate about RM285.6mil in pre-tax profit for Gamuda over the construction period, based on an assumed 8% profit-before-tax margin.
The research house said the RM59.6bil construction order book represented 4.8 times FY26 construction revenue, providing clear earnings visibility for the next three to four years.
The brokerage also sees potential for Gamuda’s outstanding order book to reach RM60bil by end-2026, assuming a monthly order book burn rate of RM1.2bil.
It estimates the group would need to secure another RM5bil of new jobs, which it considers achievable given more than RM50bil worth of tenders across Malaysia, Singapore, Taiwan and Australia.
TA Research believes another two to three DC blocks could potentially be developed at Springhill, creating further opportunities for Gamuda, subject to the developer’s rollout schedule and final designs.
Neabwhile, Kenanga Research expects Gamuda to secure another project in Taiwan in the second half of 2026, while the group has also been shortlisted for infrastructure projects in Brisbane and New Zealand.
Earnings are expected to strengthen as revenue rises from RM15.97bil in FY25 to RM23bil in FY27, while core net profit is forecast to increase from RM1bil to RM1.39bil over the same period.
“We view renewable energy (RE) projects from Australia to be the next form of re-rating catalysts,” an analyst told StarBiz.
He pointed out that Australia’s Capacity Investment Scheme has 5GW of RE generation capacity across the National Electricity Market under Tender 9, with the outcomes expected to be known in November.
