Gamuda

[winston]

not vested

5398 GAMUDA (BUY)
Bags first Port Dickson DC job

Gamuda announced last Friday that it has secured a RM1.7bn contract from a US-headquartered MNC to construct a DC (core and shell plus MEP) in Port Dickson.

Orderbook now climbs to RM45.5bn.

Gamuda is guiding a PBT margin of 8% for the package on a cost-plus mechanism.

Although Gamuda had a slow start in stacking up wins so far in CY26, we believe the group is still on track to achieve its target RM50bn orderbook by end-CY26.

We revamped our financial model and reintroduce FY26/27/28F forecasts at RM1,039m/RM1,364m/RM1,682m.

Maintain BUY rating but with a lower SOP-TP of RM5.31 (from RM5.60).

Source: HLIB

[winston]

not vested

5398 GAMUDA (BUY)
Converts Sabah Water scheme

UPPSB (45% JV) secured the RM6bn SBAUP Phase 1 construction contract.

Of which, RM5bn EPCC works will be awarded to Gamuda’s 75%-owned JV (effective orderbook increment of RM3.8bn).

The construction of the water treatment plant (350MLD) will begin in May-26 with a target completion by end-2029.

Its domestic orderbook rose to RM22.5bn , accounting for 46% of its total orderbook of RM49.3bn, which will be instrumental in driving margin recovery into FY27-28f.

This job win reinforces our confidence in Gamuda achieving RM50bn orderbook by end-CY26.

Maintain our forecasts and BUY rating with an unchanged SOP-TP of RM5.31.

Source: HLIB

[winston]

not vested

Secures MYR3.8b Ulu Padas Water Supply Scheme job
Maintain BUY call and MYR5.30 SOTP-TP

At long last, GAM has secured the MYR3.8b Ulu Padas Water Supply Scheme job.

Orderbook has risen to MYR49.3b and YTD new job wins have hit MYR18.9b.

Assuming 8%-10 pre-tax profit margin, this job will accrete MYR228m-MYR285m to core net profit over its duration of 3.5 years.

We maintain our earnings estimates which are based on new job wins of MYR25.0b p.a. and FY26E/FY27E/FY28E property sales of MYR4.5b/MYR13.2b/MYR8.5b and MYR5.30 SOTP-TP. Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/529396.pdf

[winston]

not vested

Hits MYR50b orderbook target… ahead of schedule

Maintain BUY call and MYR5.30 SOTP-TP

GAM has secured its tenth Taiwanese job win worth MYR2.3b.

Orderbook has risen to MYR51.6b and FYTD new job wins have hit MYR21.2b.

Assuming 8% pre-tax profit margin, this job will accrete c.MYR150m to core net profit over its duration of 7.3 years until its completion in 2033/2034.

With this award, GAM has hit its orderbook target of MYR50b by end-CY25 early.

We maintain our earnings estimates and MYR5.30 SOTP-TP. Maintain BUY.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/531543.pdf

[winston]

5398 GAMUDA (BUY)
Incubating the next earnings growth cycle

Gamuda reported 9MFY26 core earnings of RM700m (+6% YoY), accounting for 67%/65% of our/consensus forecast, which we deem slightly below expectations due to slower-than-expected progress on overseas construction projects and softer local property sales.

Gamuda’s orderbook rose to a record high of RM52bn.

Construction earnings are expected accelerate from CY27 onwards as 75% of its orderbook remains at the early execution stage.

Gamuda is targeting RM7bn sales in FY27, supported by RM10bn worth of planned launches.

We trim FY26/27/28 forecasts by 4%/4%/1%. Keep BUY with a slightly lower TP of RM5.27 (from RM5.41).

Source: HLIB

[winston]

not vested

5398 GAMUDA (BUY)
Inks Northern Perak BWSA

Gamuda, via its 50%-owned JV, entered into a bulk water supply agreement, with PBAPP for the supply of treated water for a 40-year supply period commencing 31 Mar 2032.

PBAPP has committed to a minimum offtake of 300mld of treated water and up to 500mld.

We estimate the Northern Perak Water Supply Scheme (NPWSS) to yield an average annual PAT of c.RM100m over its first 10 years of operation (Gamuda's share of profit: c.RM50m).

The JVco will likely award the construction contract to Gamuda in the coming months, which we estimate at c.RM4bn.

Maintain our forecasts with an unchanged SOP-TP of RM5.27.

Source: HLIB

[winston]

not vested

5398 GAMUDA (BUY)
Another two green wins down under

Gamuda has secured two RE EPC contracts in Australia namely the Majors Creek and Ganymirra solar and battery hybrid projects totalling AUD569m (RM1.6bn) from Edify Energy.

Separately, Gamuda also bagged a RM400m job, covering core and shell works for a 6-storey DC.

These bring its FY27 contract win tally to RM3.6bn, lifting its unbilled orderbook to RM56bn. Maintain our forecasts and BUY rating with an unchanged TP of RM5.27.

Source: HLIB