Gamuda Secures RM2 Billion in New Contracts, Boosting Earnings Outlook
Major investment banks maintain positive ratings for Gamuda Bhd following a significant expansion of the company’s unbilled order book.
Gamuda Bhd has successfully secured new contracts valued at RM2 billion, a development that reinforces the engineering and construction giant’s positive growth trajectory. These latest project wins have significantly strengthened the company’s financial position and provide clear earnings visibility extending into 2027.
Following the announcement, MBSB Investment Bank Bhd has maintained its BUY call on the stock, setting a target price of RM5.60. Similarly, Hong Leong Investment Bank Bhd has retained its BUY rating, assigning a target price of RM5.27. According to the original publisher, these financial institutions highlighted that the new awards serve to lift the company’s unbilled order book to a total of RM56 billion.
Analysts noted that the substantial growth in the unbilled order book is a critical factor in strengthening the company’s projected earnings. The consistent stream of new projects provides a robust foundation for Gamuda’s performance over the coming years, ensuring that their current momentum remains sustainable as they move through their project pipeline.
For the Malaysian investment landscape, Gamuda’s ability to secure large-scale contracts serves as a key indicator of health for the domestic construction and infrastructure sector. As one of the nation's primary infrastructure players, the company's sustained growth path often reflects the broader activity levels within major government and private sector development projects across the country.
Source
Originally reported by Businesstoday. Read the original report →
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