Share
- Revenue could hit a new record high of nearly RM800 million this year from working on Metrohub 4 in Klang, Logistics Hub Plot B in Shah Alam, and KL International Hospital in Bukit Jalil out of total jobs on hand worth RM1.2 billion.
KUALA LUMPUR (Aug 12): GDB Holdings Bhd (KL:GDB) could more than double its earnings this year with three major projects entering their peak revenue-generating phases, said Apex Securities.
Net profit after excluding one-off items at the construction services firm will jump to RM86.9 million in 2025, according to the research firm's estimates. Apex Securities rates GDB Holdings a ‘buy’ with a target price of 58 sen, marking the stock’s first institutional coverage in nearly two years.
This year would be a “breakout year” for GDB Holdings, the house said.
Shares of GDB Holdings have rebounded from their April lows during the global market turmoil and are now up about 8% year-to-date. Construction activities have continued to grow in a country benefiting from a boom in industrial properties and infrastructure projects.
GDB Holdings focuses on high-rise residential, commercial, and mixed-use developments as both a main contractor and main works contractor. The company is also carving out a niche in warehouse construction with two of its three ongoing projects in that segment.
Revenue could hit a new record high of nearly RM800 million this year from working on Metrohub 4 in Klang, Logistics Hub Plot B in Shah Alam, and KL International Hospital in Bukit Jalil out of total jobs on hand worth RM1.2 billion, according to Apex Securities.
Earnings, however, are expected to ease to RM67.3 million next year as ongoing projects are completed and as new order wins fall to RM705 million in 2025 from RM902 million in 2024, the house noted.
Nevertheless, the company is bidding for jobs worth up to RM5 billion and “over the longer term, its planned expansion into infrastructure construction services is expected to enhance revenue visibility”, Apex Securities said.
On valuations, the stock is currently trading at just four times its estimated earnings for 2025, which offers compelling upside over the next two years, the house said. At its target price, the company would be valued at eight times the projected 2026 earnings, and still at a 29% discount to its peers’ weighted average.
Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.
