KUALA LUMPUR, Sept 30 (Bernama) -- Gamuda Bhd remains the top pick for the construction sector by MBSB Investment Bank Bhd, supported by an all-time high order book of RM35.8 billion and a geographically diversified portfolio across construction and property.
In a note, MBSB said Gamuda is also rapidly expanding its footprint in the utilities sector, leveraging its construction expertise and financial strength to undertake asset ownership in a bid to rebuild its recurring income stream, which the group enjoyed prior to exiting the toll concession business in 2022.
The company has also secured RM3.31 billion of leasehold land in Chencharu Close from the Housing Development Board of Singapore.
The preliminary proposed development envisaged by the group comprises up to 875 residential units and a maximum of 135,625.27 square feet of commercial space.
"We are positive about this development, which is a timely continuation of Gamuda’s presence in the Singapore property scene following the completion of OLA project last year.
"The purchase consideration may be partly funded via bank borrowings, but we do not expect any material impact as this will be off balance sheet," said MBSB.
It added that the development would complement the group’s quick turnaround project (QTP) strategy, particularly in Vietnam.
Management has set a sales target of RM5.5 billion for financial year 2026 (FY2026), underpinned by continued momentum from Vietnam QTPs and new mid-to-upper range launches in Malaysia with a combined gross development value (GDV) of over RM2 billion.
Management is also in the process of closing up to five deals in Vietnam with a GDV of RM5 billion to RM6 billion.
MBSB is maintaining its 'buy' recommendation on Gamuda, with an unchanged sum-of-the-parts derived target price (TP) of RM6.35.
Meanwhile, CGS International Securities Malaysia Sdn Bhd reiterated its 'add' rating for Gamuda, citing its clear pipeline of potential projects and diversified order book spanning four markets — Malaysia, Taiwan, Australia and Singapore.
Its unchanged TP of RM7.30 is based on market capitalisation and an order book of one time, assumimg a sustainable order book of RM42.5 billion
As at 10.25 am, Gamuda's shares was six sen higher at RM5.58 with 2.15 million shares traded.
-- BERNAMA
