Maybank Investment Bank Berhad
Date of Report: September 1, 2025
Gamuda Kicks Off FY26 With Explosive Growth: Massive Orderbook, Data Centre Wins, and Bullish Earnings Outlook

Gamuda Starts the Year Strong: Data Centre Windfall and Record Orderbook

Gamuda Berhad (GAM MK), one of Malaysia’s leading engineering, construction, and property giants, has entered its new financial year with significant momentum. The company has secured a MYR2.1 billion contract for a hyperscale data centre in Selangor and is positioned for further job wins, signaling robust prospects for FY26 and FY27.
Maybank Investment Bank Berhad maintains a “BUY” call on Gamuda, raising its sum-of-the-parts target price (SOTP-TP) to MYR6.05—a 13% increase, reflecting confidence in the company’s ability to deliver outsized growth in the years ahead.

Key Highlights at a Glance

• Latest Target Price: MYR6.05 (from MYR5.37; +13%)
• Orderbook Surges: Outstanding orderbook hits MYR40 billion
• FY26/FY27 Job Wins: Upgraded to MYR25.0 billion annually
• Data Centre Opportunity: Initial MYR2.1 billion win, with potential doubling from MEP works
• Major Partnerships: Gentari and SD Guthrie JV for renewables, plus high-visibility infra jobs in pipeline
• 12-Month Price Target Upside: 12% from current levels

Gamuda’s Explosive Contract Win: Hyperscale Data Centres in Selangor

Gamuda was recently awarded a MYR2.1 billion contract by Eco World Development Group (ECW MK) for the construction, completion, testing, and commissioning of Hyperscale Data Centres (HDC) in Eco Business Park V, Selangor. The scope includes:

• Shell and core construction of two data centre blocks
• Development of a consumer substation
• Construction of a water reservoir
• Associated infrastructure and ancillary facilities

Work begins in 3QCY25 and is expected to complete by 3QCY27. Assuming an 8% pre-tax profit margin, Gamuda could recognize MYR130 million (about 2 sen per share) across the project period.

Even More Data Centre Wins on the Horizon

It is anticipated that Gamuda will soon secure a mechanical, electrical, and plumbing (MEP) contract for the same HDC project, estimated at a similar value of MYR2.1 billion. This would double the data centre-related job wins to MYR4.2 billion.

Raising the Bar: Upgraded Job Wins and Earnings Forecasts

With an additional MYR0.5 billion win for the Northern Coastal Highway in Limbang and the upcoming MEP contract, Gamuda’s job wins for the first month of FY26E amount to a hypothetical MYR4.7 billion. Given a high-confidence pipeline of >MYR25 billion in additional jobs, Maybank IBG has raised its FY26E/FY27E job wins assumptions to MYR25.0 billion each year (from MYR22.5 billion).
This translates into core net profit upgrades of 9% and 14% for FY26E and FY27E, respectively.

Gamuda: Company Overview and Shareholding Structure

Gamuda engages in engineering, construction, property development, as well as water operations and maintenance. It boasts a well-diversified revenue stream across key sectors in Malaysia and internationally.

Other statistics:

• Issued shares: 5,803 million
• Market capitalisation: MYR32.3 billion (USD7.6 billion)
• 52-week high/low: MYR5.70 / MYR2.39
• 3-month average turnover: USD69.9 million
• Free float: 25.1%

Financial Performance Snapshot

High-Confidence Pipeline: Renewable Energy and Water Projects

Gamuda has unlocked a string of “high-confidence” potential job wins, totaling over MYR25.5 billion, including:

• Development of 1.5GW and 1.2GW solar photovoltaic power plants and battery storage with Gentari and SD Guthrie (MYR13.5 billion combined)
• Penang-Perak water transfer project (MYR5.0 billion)
• 600MW renewable energy and battery storage in Tasmania (MYR3.0 billion)
• Ulu Padas water supply scheme (MYR4.0 billion)

Gamuda is the sole contractor in direct negotiations for these projects, raising the likelihood of conversion.

Additional “Medium-Confidence” Jobs: Regional Expansion

The company is also bidding for over MYR30 billion in “medium-confidence” jobs, including:

• Pearl Computing data centres (remaining MYR8.0 billion in Selangor)
• Major infrastructure works in Australia (Parramatta transit-oriented development, Sydney Metro West, Sunshine Coast Railway)
• Potential jobs in New Zealand and Taiwan

Financials & Valuation: SOTP Target Price Justified by Strong Growth Visibility

Maybank IBG now values Gamuda’s engineering and construction operations at 20x FY27E PER, a premium justified by the potential for actual job wins to overshoot current projections. Property segment profits are discounted at 8% WACC and adjusted for shareholding.

Gamuda’s Value Proposition and Growth Drivers

Gamuda has cemented its status as a top-tier engineering and construction player, renowned for complex tunneling and infrastructure projects such as KVMRT 1&2, Ipoh-Padang Besar EDT, SMART, LDP, and more.

• Strategic Landbank: Over MYR60 billion in gross development value (GDV) across Malaysia, Vietnam, the UK, and Australia.
• Orderbook Strength: E&C orderbook of MYR39.8 billion and unbilled property pre-sales of MYR7.7 billion as of April 2025.
• International Expansion: Australia now Gamuda’s second E&C base, recent ventures into the UK for property development.
• Healthy Gearing: Net gearing at 0.45x as of end-April 2025, well below its internal 0.70x cap.

Key Risks and Swing Factors

• Upside: Greater-than-expected orderbook replenishment, especially from domestic mega rail projects and overseas ventures. Stronger property pre-sales and faster progress on Penang Silicon Island reclamation could boost earnings.
• Downside: Delays in key infrastructure projects (e.g., KVMRT3), slower-than-expected reclamation works, and cost overruns in project execution could impact performance.

Comparative Analysis: Other Notable Companies Covered

Eco World Development Group (ECW MK)

• Listed as a major partner and customer for Gamuda’s data centre construction (contract value: MYR2.1 billion).
• Stock call: BUY
• Current price: MYR2.10
• Target price: MYR2.23

SD Guthrie (SDG MK)

• Partnering with Gamuda for the development of 1.2GW of solar photovoltaic power plants with battery storage.
• Stock call: BUY
• Current price: MYR5.10
• Target price: MYR5.64

Conclusion: Gamuda Remains a Top Pick in Construction, Poised for Further Upside

Gamuda’s strong pipeline, dominant market position, and successful expansion into new sectors like data centres and renewables underpin Maybank IBG’s bullish stance. With a record orderbook, robust earnings growth, and an upgraded target price, Gamuda stands out as the premier construction play in Malaysia and the region for FY26 and beyond.
Investors seeking exposure to large-scale infrastructure, property, and the accelerating digital economy should keep Gamuda firmly on their radar.