PETALING JAYA: Gamuda Bhd
’s latest construction contract win in Australia has taken its outstanding order book to a staggering RM61.6bil.
The win elevates Gamuda’s year-to-date financial year 2027 (FY27) job wins to RM9.3bil within just one month of the financial year (ending July 31).
Analysts noted that even assuming a monthly order book burn rate of RM1bil to RM1.4bil, the engineering and construction giant is poised to comfortably end calendar year 2026 with an outstanding order book of RM54bil to RM56bil, even if the group does not clinch any further contract wins.
“We see a higher possibility of new wins breaching our said target.
“This is premised on potential data centre jobs from repeat and likely new clients; the Northern Perak Water Supply Scheme; Taiwan rail projects; Australian renewable energy projects; and upcoming integrated station development (ISD) projects that Gamuda was also shortlisted for – Sydney Olympic Park and Pyrmont station under Sydney Metro,” RHB Research stated in a report following Gamuda’s latest significant milestone in overseas infrastructure project contract wins.
On Sept 3, the Riverside Link Consortium – comprising Gamuda (80% effective share) and MTR Corp Australia (20%) – was officially awarded the Parramatta ISD contract by Sydney Metro.
The project is valued at A$880mil (RM2.54bil) with Gamuda’s effective share at RM2bil.
Under the contract, Gamuda will design and construct the future Parramatta underground metro station and associated infrastructure. Works are scheduled to commence in September this year with targeted completion in 2032.
The contract comes with a 50:50 transit-oriented development component between Gamuda and MTR Australia.
The joint venture grants development rights for high-rise buildings above and adjacent to the station, carrying an estimated gross development value of A$1.6bil (RM4.6bil) over a 12-year development duration starting post-completion in 2032.
More importantly, analysts believe the project is expected to command a pre-tax profit margin of 6% to 8% and safeguarded by a “rise-and-fall” provision acting as a cost pass through clause, thereby shielding Gamuda from prolonged material cost inflation.
The contract represents Gamuda’s sixth station win along the Sydney Metro West alignment, solidifying its dominant competitive standing and operational scale in Australia.
It also paves the way for potential wins of other highly anticipated projects, such as the Pyrmont and Sydney Olympic Park ISD projects.
Consequently, analysts have revised their expectations upward for Gamuda.
RHB Research raised its FY27 new job wins target for Gamuda to RM25bil (from RM20bil) and subsequently boosted its FY27 and FY28 earnings estimates for the company by 4% and 6% respectively.
CGS International (CGSI) Research forecast Gamuda’s net profit to jump 23.6% to RM1.34bil in FY27, up from RM1.08bil in FY26.
RHB Research anticipates a 35.5% surge in recurring net profit to RM1.4bil in FY27.
CGSI Research reiterated its “add” call on the stock with a sum-of-parts (SOP)-based target price (TP) of RM 5.78 a share, valuing the construction division at an FY27 price earnings multiple of 19 times.
RHB Research maintained its “buy” rating on Gamuda but raised its SOP-derived TP to RM6.20 a share (up from RM 6.02), which incorporates an 8% environment, social and governance premium.
