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The Star
a day ago
- Business
- The Star
Gamuda on track to exceed project wins this year
PETALING JAYA: Gamuda Bhd , the country's largest construction player, is 'highly likely' to exceed its order-book target of RM40bil to RM45bil for 2025, according to analysts. CGS International Research (CGSI Research) said Gamuda, whose single-largest shareholder is the Employees Provident Fund, had already achieved an order book of RM37.2bil as of end-June, following its latest contract win worth RM3.72bil in Taiwan announced recently. The contract to build a wharf and connecting bridges for the Kaohsiung Port Intercontinental LNG Terminal Construction Project was secured by its joint-venture company. Given its 70% majority stake in the company, the revenue attributable to Gamuda from the five-year contract is estimated at RM2.6bil. 'We expect one more Taiwan contract win by the end of this year worth about RM3bil, which is part of the additional provisional amount for its RM3.1bil Xizhi Donghu Mass Rapid Transit turnkey construction project in Taiwan that it won last October. 'This project came with already determined additional work of eight billion New Taiwan dollars or about RM10.8bil. Gamuda's 75% share is worth RM8.1bil. 'Including the latest Taiwan order and assuming it wins the local projects it is targeting, we estimate Gamuda will end this year with an order book of RM42.2bil, factoring a burn rate of RM1bil per month. 'This does not include other potential awards in Taiwan, Australia the Penang light rail transit project and the Perak to Penang water transfer project,' the research house said. Meanwhile, MIDF Research expects about RM11bil to RM15bil of new wins for Gamuda. Of the high percentage of wins that the management guided for in a previous analyst briefing in March, about RM24bil worth of contracts remain, MIDF Research said. 'We expect the new wins to come from seven tenders submitted for data centres, a Sabah water project worth RM4bil, additional work on the Xizhi Donghu transit project, and potential contract conversion from early contractor involvement jobs for renewable energy in Australia. 'We believe there may also be a potential variation order from the Sydney Metro West tunnelling project that was halted for two months due to proximity to the foundations of an existing building.' The research house also noted that Gamuda's project pipeline for next year looks healthy, with the construction giant being shortlisted for several projects in Australia and New Zealand, such as the Parramatta Integrated Station Development, Sunshine Coast Railway in Brisbane and the 26-km Warkworth to Te Hana section of the Northland Expressway in New Zealand. With the latest contract win, the share of Taiwanese projects on Gamuda's order book jumped to RM9.9bil, or 27% of its total work, slightly behind Australia at 28%. Nevertheless, CIMB Research said Malaysia continues to be Gamuda's largest construction market, accounting for 39% of its order book. 'We make no changes to our earnings forecast, as the latest win already forms part of our new contract assumptions for this year. 'There is upside to our earnings projections if Gamuda maintains its robust contract delivery and exceeds our win assumptions of RM20bil annually for both this year and next year,' it said. Of the three research firms, CGSI Research had the highest target price of RM6 per share.
The Star
30-06-2025
- Business
- The Star
Gamuda docks another deal in Taiwan
PETALING JAYA: Gamuda Bhd is expanding its global footprint further as it marks its ninth project win in Taiwan. The latest contract, worth RM3.72bil (25.58 billion New Taiwan dollars), was secured by its joint-venture (JV) company to build a wharf and connecting bridges for the Kaohsiung Port Intercontinental LNG Terminal Construction Project. Given its 70% majority stake in the JV, the revenue attributable to Gamuda from the five-year contract is estimated at RM2.6bil. This provides a major boost to the conglomerate's overseas revenue. To put it into perspective, overseas operations accounted for two-thirds of the group's total revenue in the first nine months of the financial year ending July 31, 2025 (FY25). The remaining 30% stake is held by Taiwan-based DongPi Co Ltd, which is involved in general civil construction including tunnel construction and marine engineering. This is not the first time DongPi is partnering with Gamuda. Both companies, via a JV, were previously involved in the construction of the third- and fourth-stage seawalls for the Reclamation Project in the Logistic Storage Area of Taipei Port, as well as the Second Phase of the Dike Recovery and Reuse Project. In a filing with Bursa Malaysia yesterday, Gamuda said the new contract involves the construction of 2.193km of seawall, 1.2km of connecting bridge, a wharf, unloading platform, connecting platform and caisson-type docks. 'The project is being undertaken for Taiwan International Ports Corp Ltd, Kaohsiung Branch – the state-owned port authority managing the Port of Kaohsiung. 'The project aims to establish a complete and secure process for offshore unloading and onshore receiving of LNG (liquified natural gas) and to ensure the efficient import, storage and regasification of LNG for delivery to Dalin and surrounding users,' according to Gamuda. Gamuda has been involved in Taiwan's infrastructure development since 2002, with projects spanning transport, marine works and utilities. Projects that highlight the group's expertise include the Kaohsiung MRT Orange Line and Yellow Line, TaoYuan City Underground Railway, Xizhi Donghu MRT, Guantang Marine Bridge, Seawall at Taipei Port, and the 161kV Songshu to Guanfeng Underground Transmission Line. Gamuda said some of the main risks associated with the project include the current tight labour market and unpredictable weather conditions. The group added that the project is expected to contribute positively to revenue and earnings for FY26 onwards until its completion. Gamuda is no stranger to bagging overseas contracts. The conglomerate's most recent win was in March this year for the 345kV Gangfeng-Zhongke, Zhongke-Hengshan Underground Transmission Line Civil Engineering and Auxiliary E&M System Design-Build (Third Section) Project, valued at RM557.2mil. The project was awarded by Taiwan Power Co, a state-owned electric power utility, and is set to be delivered through a 50-50 JV between Gamuda and Feng Shun Construction Co Ltd. The design-and-build contract, which includes civil engineering and auxiliary electrical and mechanical system works, covers the construction of four shafts and a 3,208m cable tunnel. It is expected to be completed in 44 months. For the third quarter ended April 31, 2025 (3Q25), Gamuda registered a higher profit of RM246.83mil, up from RM235.79mil a year earlier, as domestic construction earnings tripled. Revenue also rose to RM3.08bil, compared to RM2.49bil posted in 3Q24. The group anticipates that performance in the next quarter will be largely driven by both overseas and domestic construction activities, including the construction of several data centres and higher contributions from its property division's quick turnaround projects. Among its ongoing data centre developments is a RM1.01bil project in Port Dickson, Negri Sembilan, undertaken through its wholly-owned subsidiary, Gamuda DC Infrastructure Sdn Bhd, under Gamuda Engineering Sdn Bhd. Within Malaysia, Gamuda was awarded a contract in January 2025 to design and build the first civil works package of the Penang Mutiara Line LRT, valued at RM8.3bil. Secured through its 60% subsidiary, SRS Consortium Sdn Bhd, the project is expected to span 72 months, with physical works scheduled to start in the third quarter of this year. The group also has notable projects in Sabah, Sarawak, Australia and Singapore. 'Moving forward, the resilience of the group is underpinned by its construction order book of RM35bil and unbilled property sales of RM7.7bil. 'On top of that, the group has a healthy balance sheet with a comfortable net gearing of 45%, well below its self-imposed gearing limit of 70%,' it noted.
