KUALA LUMPUR: Gamuda Bhd
shares climbed in early trade on Wednesday after the group posted record earnings for the financial year ended July 31, 2026 (FY26), underpinned by stronger domestic construction activities.
The construction and engineering group rose eight sen, or 1.61%, to RM5.06 at 9.40am, with 13.86 million shares traded, emerging among the top gainers on Bursa Malaysia.
Analysts said Gamuda’s FY26 results were broadly within expectations, while its record construction order book and the early stage of execution for many projects point to stronger earnings growth from FY27 onwards.
Hong Leong Investment Bank (HLIB) Research said Gamuda’s 4QFY26 core net profit rose 7% year-on-year and 36% quarter-on-quarter to RM347.9mil, bringing FY26 core earnings to RM1.05bil, up 6% from a year earlier.
Full-year earnings accounted for 105% of HLIB Research’s forecast and 100% of consensus estimates, which it deemed within expectations.
The research house said the stronger quarterly performance was driven by seasonally higher billings from the construction and property segments, which increased 27% and 49% quarter-on-quarter, respectively.
For FY26, earnings growth was supported by stronger construction contributions, particularly from domestic data centre projects, although this was partly offset by weaker property earnings.
Gamuda’s construction order book rose to a record RM61bil after securing more than RM12bil in new projects in the first two months of FY27, putting the group on track to exceed its RM50bil end-2026 target.
Gamuda is targeting construction revenue growth from RM15bil in FY26 to RM24bil in FY27 and RM35bil by FY29 as more projects move into their peak execution phases.
MBSB Research similarly expects FY27 to mark the beginning of a stronger earnings upcycle, noting that a large proportion of Gamuda’s projects remain at the early stages of execution.
It said 48% of the RM61.2bil order book was at between zero and 10% progress as at end-July, while another 26% was between 11% and 20% complete. Only 10% had progressed beyond 25%.
“About 90% of FY27 revenue is already covered by the existing order book, while most of the RM61bil order book has yet to reach peak execution,” MBSB Research said.
The research house said RM30bil to RM35bil of new contract wins in FY27 was achievable, supported by about A$15bil, or RM44bil, worth of tenders in Australia alone.
This could keep Gamuda’s order book above RM60bil even as project execution accelerates, with the figure potentially approaching RM70bil over the next 12 months, it added.
Meanwhile, Gamuda’s property division recorded RM3.2bil in sales in FY26, down 22% year-on-year and below its RM4bil target, mainly due to deferred launches and softer domestic sales.
Management is targeting RM7bil in property sales for FY27, supported by close to RM10bil worth of planned launches across Vietnam, Singapore and Malaysia.
HLIB Research said property earnings could remain relatively subdued in FY27 as Gamuda rebuilds its unbilled sales before accelerating from FY28 as new launches translate into earnings recognition.
MBSB Research also expects the property division to enter its next growth phase, with Vietnam and Singapore accounting for the bulk of the upcoming launch pipeline.
Both research houses maintained their “buy” calls on Gamuda.
HLIB Research raised its target price to RM5.75 from RM5.27 after increasing its FY27 and FY28 earnings forecasts by 2.9% and 2.2%, respectively.
MBSB Research maintained its target price at RM5.60, citing Gamuda’s record order book and improving multi-year earnings visibility.
RHB Research also maintained its “buy” call on Gamuda with an unchanged target price of RM6.20, after FY26 core net profit of RM1.05bil came in broadly within expectations.
It expects earnings to strengthen as more projects move into their main execution phases, noting that 26% of existing jobs had reached the site preparation and procurement stages at end-FY26, up from 13% in 3QFY26.
RHB said further order book replenishment could come from repeat data centre clients and more than A$15bil worth of shortlisted projects in Australia.
It also highlighted Gamuda’s CRESS renewable energy project in Perak, estimating that the venture could contribute about RM46mil annually to Gamuda based on its 33% stake from 2029.
