Gamuda Shares Up 3.85 Pct This Morning Following New Sabah Power Project Terms

KUALA LUMPUR, May 6 (Bernama) -- Gamuda Bhd's shares were up 3.85 per cent this morning, after its unit accepted new Sabah power project terms. 

As of 11.48 am, the counter rose 17 sen to RM4.59, with 20.62 million shares traded. 

Its 45 per cent-owned subsidiary, Upper Padas Power Sdn Bhd accepted a revised Letter of Notification from the Energy Commission of Sabah for the development of the Ulu Padas Hydroelectric Project.

The floating solar component is estimated at RM500 million in engineering, procurement, construction, and commissioning (EPCC) contract value, with Gamuda holding 75 per cent stake in the construction works,  implying a potential RM375 million addition to its order book.  

As such, MBSB Investment Bank Bhd maintained its "buy" recommendation on Gamuda with an unchanged target price of RM5.60. 

The investment bank said Gamuda remains its top pick for the construction sector, with an all-time high order book of RM49.3 billion and a geographically diversified portfolio for both construction and property. 

"It is also rapidly expanding its footprint in the utilities space, leveraging its expertise in construction and financial strength to undertake asset ownership in a bid to rebuild its recurring income stream," it said in a research note. 

-- BERNAMA