KUALA LUMPUR: Shares in Gamuda Bhd
slipped in early trade on Tuesday despite securing an A$790mil (RM2.28bil) engineering, procurement and construction (EPC) contract for a renewable energy project in Australia, amid a weak broader market.
At 9.55am, Gamuda fell four sen, or 0.81%, to RM4.87. The counter has fallen 1.42% so far this year.
Gamuda announced that its Australian arm had secured the EPC contract for Stage 1 of the Mortlake Energy Hub in Victoria, Australia.
The project comprises a 435MWp solar farm and a 1,449MWh battery energy storage system (BESS), with completion targeted for January 2029.
CGS International said the Mortlake Energy Hub contract marks Gamuda Engineering Australia’s first win in Victoria and could open up further opportunities in the state. The research house noted that Gamuda’s previous Australian contract wins had predominantly been in New South Wales.
It said the latest award brings Gamuda’s year-to-date FY27 contract wins to RM10.5bil and lifts its order book to RM61.2bil as at September 2026.
CGS expects contract-win momentum to remain strong, supported by the group’s existing project pipeline.
It estimated that Gamuda could end 2026 with an order book of RM56bil even without further contract wins, about 12% above its RM50bil target. With its strong project pipeline, however, the research house expects the order book could reach RM60bil by year-end.
CGS said earnings delivery, rather than contract wins, is now the more important catalyst for Gamuda. It expects the group to post a core net profit of RM376mil for 4QFY26, up 13% year-on-year and 60% quarter-on-quarter.
The research house expects earnings momentum to continue into FY27, supported by key local construction projects moving up the S-curve. It maintained its “add” call with a target price of RM6.05.
Meanwhile, MBSB Research maintained its “buy” call on Gamuda with an unchanged target price of RM5.60, citing its record RM61.2bil order book and improving earnings visibility.
It said the Mortlake project marked Gamuda Engineering Australia’s entry into large-scale solar and battery energy storage system (BESS) EPC works, with a potential follow-on Stage 2 project worth more than RM2bil.
MBSB Research expects Gamuda’s order book to remain at RM60bil or above by end-2026, supported by a strong pipeline of potential job wins.
