KUALA LUMPUR: Gamuda Bhd is powering through 2025 with contract wins piling up at a rapid pace, securing RM21.67 billion worth of new jobs so far this year - a feat that has lifted its orderbook to nearly RM40 billion.
Yesterday (Aug 29), Gamuda announced its unit Gamuda Engineering Sdn Bhd had been awarded a RM2.14 billion contract to build hyperscale data centres in Eco Business Park V, Selangor.
The project, awarded by Quantum Alpha Sdn Bhd, covers the construction, completion, testing and commissioning of two data centre blocks, a consumer substation, a water reservoir and related infrastructure.
Quantum Alpha is a wholly owned subsidiary of Eco World Development Group Bhd.
Just four days earlier, Gamuda re-entered the Sarawak infrastructure market with a RM1.13 billion win under the state-backed Northern Coastal Highway project.
This came after a slew of back-to-back contract wins over the past eight months, which CGS International said underscore Gamuda's ability to straddle both traditional infrastructure and new-economy assets.
"From highways in Sarawak to hyperscale data centres in Selangor, Gamuda is positioning itself at the heart of Malaysia's next growth chapter," analyst Chong Tjen-San said in a note.
CGS International, which maintained an "Add" rating on the counter, recently raised its target price to RM7.30, the highest since Gamuda's 1-for-1 bonus issue in December 2024, which adjusted its share price to RM4.71 from RM9.57.
The stock last traded at RM5.57, up 18 per cent since the adjustment and 50 per cent higher compared to a year ago, according to CGS.
"With an expanding and diversified orderbook spanning Malaysia, Taiwan, Australia and Singapore, we believe Gamuda is on track to sustain strong earnings growth," Chong said, adding that risks such as raw material costs and project delays remain in play.
MBSB Research in a Aug 26 research note said that Gamuda is likely to hit the RM40 billion to RM45 billion outstanding order book level by year-end.
This will comprise new wins expected to be secured from data centres worth between RM11 billion and RM15 billion of the total.
The research firm said other projects include Sabah water project, additional works for the Xizhi Donghu MRT and potential contract conversion from early contractor involvement jobs for renewable energy in Australia.
"There may also be a potential variation order from the Sydney Metro West tunnelling project that was halted for two months due to the proximity to the foundations of an existing building.
"Project pipeline in 2026 also looks healthy with Gamuda being shortlisted for several projects overseas including the 26-kilometre Warkworth to Te Hana section of the Northland Expressway in New Zealand," it said in a note.
For the first nine months ended April 30, 2025, Gamuda recorded a higher net profit of RM671 million, up five per cent year-on-year, driven by stronger performance in its domestic construction projects.
Property sales grew 10 per cent to RM2.6 billion compared with RM2.3 billion sold last year, primarily driven by several quick-turnaround projects in Vietnam.
During the same period, Gamuda's revenue increased by 14 per cent to RM11.5 billion from RM10 billion recorded in the corresponding period last year.
The group declared a second interim dividend of five sen per share, bringing its year-to-date dividend to 10 sen per share, 25 per cent more than the previous year's eight sen.
Looking ahead, the group anticipates that the next quarter's performance will be largely driven by both overseas and domestic construction activities.
This includes the construction of several data centres and higher contributions from the property division's various quick-turnaround projects.