PETALING JAYA: Gamuda Bhd
expects its construction revenue and profit before tax (PBT) to grow by around 60% year-on-year in financial year 2027 (FY27), with 90% of its revenue already covered by existing contracts, according to MBSB Research.
It said the group’s record pro forma order book of RM63.9bil provides strong earnings visibility, while its property sales are targeted to more than double to RM7bil in FY27.
“Property sales are targeted to more than double to RM7bil in FY27, underpinned by a RM9.4bil launch pipeline across Vietnam, Singapore and Malaysia over FY27-FY28,” it said.
“Property earnings are expected to strengthen from FY28 onwards.”
Meanwhile, Gamuda could also secure an engineering, procurement, construction and commissioning contract worth RM4bil to RM5bil for the Northern Perak Water Supply Scheme within the next six months.
The research house said the potential award would depend on funding finalisation following the signing of an implementation agreement between the Perak government and Khazanah Air Perak (KAP), a 50:50 joint venture between Gamuda and Perbadanan Kemajuan Negeri Perak.
“Under the agreement, KAP will undertake the raw water infrastructure works, while its unit, Prasarana Air dan Irigasi Perak, will develop and operate the water treatment plants,” it said.
The development follows a 40-year bulk water supply agreement signed with Penang in July 2026. The RM5bil scheme involves transferring up to 1,500 million litres per day (mld) of raw water from Sungai Perak to Bukit Merah Dam.
Of this, 500 mld is allocated for irrigation and 1,000 mld for domestic and industrial consumption, including the Kerian Integrated Green Industrial Park.
“Penang has committed to a minimum of 300 mld offtake over 40 years, with supply targeted to commence on March 31, 2032,” MBSB Research said.
“Based on the RM210mil annual capacity charge and RM1.70 per cubic metre supply tariff, we estimate annual project revenue of around RM396mil, or RM198mil attributable to Gamuda through its 50% stake.”
The research house estimated that the concession could generate RM30mil to RM40mil in annual attributable earnings once operations stabilise, assuming a profit-after-tax margin of 15% to 20%.
