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- “We expect the group’s performance to catch up in the final quarter, which has historically been its strongest.”
KUALA LUMPUR (July 1): Gamuda Bhd (KL:GAMUDA) rose on Monday to its highest in nearly two weeks as investors stayed optimistic while analysts bet that earnings would catch up with their forecasts after the latest miss.
Core net profit nine months into the financial year ending July 31, 2025, accounts for a little under two-thirds of the consensus’ full-year estimates, mainly due to slower-than-expected earnings recognition from its overseas construction and property projects.
“We expect the group’s performance to catch up in the final quarter, which has historically been its strongest,” the research house said, adding that Gamuda’s project pipeline remains encouraging.
Gamuda climbed as much as 17 sen or nearly 4% to RM4.82—its highest since June 19. The stock closed at RM4.79 after more than 37 million shares changed hands. At its last traded price, the company had a market capitalisation of RM28 billion.
Shares of Gamuda have rebounded 34% from its April lows during the global market turmoil thanks to a slew of project wins that have swelled the construction giant’s order book to a new record high.
RHB Investment Bank remained bullish that Gamuda could meet its order book target of RM40 billion to RM45 billion by year-end. As of end-April 2025, the group had an outstanding order book worth RM34.6 billion.
The house highlighted several high-potential wins in the pipeline, including the Sabah water supply scheme (estimated at RM3 billion–RM4 billion), five data centre tenders likely located in Elmina and Puncak Alam, and early contractor involvement (ECI) works for renewable energy projects in Australia, which may convert by late 2025.
Further upside could come from data centre contracts tied to a 389-acre site in Negeri Sembilan, if awarded within the year, it added.
Analysts remain broadly positive on Gamuda, with 20 out of 21 analysts covering the stock having a “buy” recommendation, and one having a “hold” call, Bloomberg data showed. The stock’s 12-month target price stands at RM5.50, implying a potential upside of over 13% from its last-traded price.
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