PETALING JAYA: GDB Holdings Bhd
’s latest ParkCity Residence contract win will lift the group’s order book to RM2.05bil, thus extending earnings visibility through financial year 2031 (FY31), according to Apex Securities Research.
The RM1.02bil new construction award for the main building works of ParkCity Residences in Desa ParkCity, Kuala Lumpur, is also the largest residential contract in the group’s history, commencing on Nov 4, 2026 with completion scheduled for Aug 18, 2031.
Applying an 8% profit after tax (PAT) margin, the research house said in a report that the latest contract could contribute roughly RM81.4mil in cumulative PAT, or around RM17mil a year over its 58-month tenure, equivalent to about 21.8% of its FY27 core net profit forecast.
Year-to-date contract wins for GDB comprised ParkCity Residences (RM1.02bil), the Wolo Hotel & Residences Mont Kiara KL (RM439.4mil), Sarawak roadworks (RM121.4mil), the National Flood Fore-casting and Warning Programme Phase 3 (PRAB) flood forecasting sub-contract (RM119mil) and the water treatment plant in Song District, Sarawak (RM115.5mil).
Apex Securities Research also said the group’s tender book now stands at about RM3.3bil following the ParkCity Residence award, spanning industrial, data centre, commercial, mixed-use, infrastructure and residential sectors.
Demand for high-end residential towers in established Klang Valley enclaves such as Desa ParkCity – alongside industrial, data centre and Sarawak infrastructure work – continues to underpin the group’s pipeline across Peninsular Malaysia, Sabah and Sarawak, the research house added.
Meanwhile, Apex Securities Research has revised GDB’s FY26 order book replenishment assumption upward to RM2bil, while also maintaining its FY27 and FY28 assumptions at RM900mil each.
Consequently, the research house has upgraded GDB’s earnings forecasts for FY26, FY27 and FY28 to RM75.1mil, RM78.1mil and RM72.2mil respectively.
It maintained a “buy” call on the stock with an increased target price of 67 sen from 60 sen previously.
Apex Securities Research continues to like GDB for its sizeable tender book of about RM3.3bil, its expansion into Sarawak infrastructure works and its diversification into property development.
The risks to its call include rising material prices, failure to secure new contracts, and the risk of liquidated ascertained damages.
An analyst with a local brokerage viewed the latest contract win positively, saying it extends GDB’s relationship with Perdana ParkCity Sdn Bhd dating back to 2013, during which the group delivered One Central Park, Westside III and Park Regent at Desa ParkCity.
The execution risk appears manageable given the group’s quality track record, with Park Regent achieving a BuildQAS score of 85.5% and Metrohub 4 a QLASSIC score of 90%.
That said, running two large high-rise jobs concurrently – Wolo and ParkCity – will test project management capacity and working capital, while the long tenure exposes margins to building material and labour cost movements, the analyst added.
