Gamuda Bhd is on a winning streak, and investors are taking note. With recent contract wins propelling its stock price, the company’s ambition to become Malaysia’s construction giant looks more achievable than ever. After closing at RM8.60 on Monday, Gamuda opened strong the next day, surging 8.7% to RM9.35 — its highest level since its IPO. A leap that underscores the market’s high expectations for the company’s future.
Racing Towards a Record-Breaking Order Book
Gamuda’s latest contract wins are rapidly filling its order book, which now stands at RM31.5 billion—just shy of the company’s lofty RM35 billion target for 2024. As analysts look ahead, many predict that Gamuda will not only meet but surpass this goal. The recently awarded Penang Light Rail Transit (LRT) contract, valued at RM4.56 billion through its 60% stake in the SRS Consortium, could push Gamuda to new heights in record time.
On top of this, Gamuda Engineering Sdn Bhd has landed a substantial RM451.4 million project to build a data center in Cyberjaya. Scheduled to kick off in Q4 2024 and wrap up by Q1 2026, this project is expected to deliver pre-tax profit margins between 10% and 15%. Together, these projects underscore Gamuda’s strength in securing highly lucrative contracts across multiple sectors.
Going Global: Expanding Beyond Malaysia
Gamuda’s vision isn’t limited to Malaysia. The company is expanding across Asia and Australia, with a growing footprint in large-scale metro, renewable energy, and infrastructure projects. Just recently, it scored a massive A$243 million contract for the Boulder Creek Wind Farm in Queensland, Australia, reinforcing its commitment to renewable energy—a sector poised for exponential growth.
In Taiwan, Gamuda continues to build momentum, recently securing an RM3.2 billion deal for the Xizhi Donghu MRT project. Over the next three years, the group could also clinch an additional RM8.1 billion in contracts for new metro railways in Taipei. These overseas contracts now make up 69% of Gamuda’s order book, with analysts forecasting that local contracts will soon account for a larger portion, reaching 45% by December.
Analysts Show Strong Confidence: Higher Price Targets Ahead
Based on Shareinvestor.com, the consensus estimation for Gamuda stock is RM9.488, this show the stock price are currently undervalue, reiterating a “buy” rating.
MIDF Research, likewise, has set a target price of RM9.64, highlighting Gamuda’s expertise in mega projects and its specialization in high-value, hyperscale data centers. These strengths, combined with its expansion into renewable energy and infrastructure, place Gamuda in a powerful position to capture more market share and deliver robust returns to shareholders.
Stock Surge Signals Investor Confidence
Gamuda’s stock climb from RM8.60 to RM9.35(8.7%) tells the story: investors are responding positively to the company’s strong order book growth, diversified portfolio, and international expansion strategy. The stock’s consistent rise reflects growing confidence that Gamuda is set to achieve even greater heights. With recent “add” and “buy” calls from analysts, this positive trend could very well continue as Gamuda pursues more high-profile contracts.
Conclusion: A Bright Future Ahead
In an industry driven by massive projects and substantial risks, Gamuda Bhd has emerged as a trailblazer, consistently winning contracts that push it further ahead of the competition. With a robust order book, an expanding global presence, and steady stock gains, Gamuda is positioning itself as a dominant player in both Malaysian and international markets. For investors, the message is clear: Gamuda’s upward trajectory shows no signs of slowing down.