PETALING JAYA: Gamuda Bhd
’s shares climbed to a near nine-month high as investors cheered record revenue and a swelling pipeline of mega contracts at home and abroad, with Australia emerging as a key growth engine.
The rally comes as analysts kept a bullish stance on the construction giant’s earnings outlook.
MBSB Research expects financial year 2027 (FY27) to mark the start of a stronger earnings upcycle, underpinned by Gamuda’s record RM61.2bil order book.
Importantly, about 75% of its projects are still in the mobilisation and early execution stages, suggesting a large portion of the order book has yet to meaningfully flow through to earnings.
Around 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.
“Replenishment should also remain strong, with RM30bil-RM35bil of FY27 wins seen as achievable, bolstered by A$15bil (around RM44bil) of tenders in Australia alone.
“This should keep the order book above RM60bil even as execution accelerates, with potential to approach RM70bil over the next 12 months,” MBSB Research said in a note.
Gamuda was one of the most actively traded stocks yesterday.
The stock closed at RM5.18, with more than 87 million shares changing hands.
Meanwhile, TA Research believes Gamuda remains well on track to achieve the group’s internal unbilled order book target of RM60bil by end-2026.
“Based on our estimates, assuming an average order book burn rate of RM4bil-RM5bil over the remaining three months, Gamuda would need to secure approximately RM2.8bil-RM3.8bil of new contracts to meet the target.
“We view this as achievable, underpinned by its sizeable over RM50bil tender pipeline across Malaysia, Australia, Singapore and Taiwan.”
TA Research said Gamuda delivered a solid FY26 performance, with core net earnings of RM1.05bil, broadly in line with expectations.
Year-on-year, revenue improved by 16.5%, primarily driven by stronger progress billings from its construction segment on the back of faster order book execution across both domestic and overseas projects.
This improvement was partially offset by a weaker revenue contribution from its property development segment.
Despite the stronger top-line growth, core net profit improved at a slower pace of 6.8%, weighed down by higher effective tax rate.
Quarter-on-quarter, revenue and core profit before tax (PBT) improved by 30.1% and 28.3%, respectively, with the positive performance driven by stronger contribution from both construction and property segment as well as stronger property segment PBT margin.
Post-Gamuda’s fourth quarter results, CGS International Research tweaked its FY27-FY28 earnings per share (EPS) higher by 1%-2% and lifted its target price to RM6.40 per share.
A strong order book, together with better earnings delivery could lead to a sustainable share price re-rating, it added.
“We do not discount upside to FY27 EPS given that three of its projects in New South Wales will be completed earlier than expected, where there is an incentive for early delivery.
“For local projects, nearer-term opportunities include the interstate water transfer project from Perak to Penang and other data centres outside of Pearl Computing, while the tender volume for Gamuda Engineering Australia has tripled to A$15bil.”
