Gamuda Bhd has secured its largest renewable energy Engineering, Procurement and Construction contract to date, worth A$1.1 billion or RM3.12 billion in Central Queensland, Australia, with both MBSB Investment Bank Bhd (MBSB Research) and Hong Leong Investment Bank Bhd (HLIB) maintaining BUY calls and target prices of RM5.60 and RM5.41 respectively, citing strong orderbook visibility and expanding renewable energy exposure.
The deal, awarded via Gamuda’s wholly owned Australian subsidiary DT Infrastructure, covers the Smoky Creek and Guthrie’s Gap Solar Power Stations. The projects comprise 720MW of solar capacity and 600MW or 2,400MWh of battery energy storage systems, making them the largest solar and storage hybrid projects under construction in Australia.
Construction is scheduled to begin in mid-2026 and is expected to be completed within around 2.5 years under fixed-price EPC contracts with mid-single digit profit margins.
MBSB Research maintained its BUY rating, saying the contract lifts Gamuda’s orderbook to a record RM55.4 billion and brings year-to-date wins to RM25 billion, well ahead of expectations.
It added that the relatively short project duration should support stronger earnings contribution from FY27 onwards, while reinforcing Gamuda’s growing renewable energy footprint across Australia and Malaysia.
Hong Leong Investment Bank also kept its BUY call, highlighting that the award further strengthens Gamuda’s positioning in Australia’s energy transition infrastructure space. It noted that Gamuda’s renewable energy pipeline now stands at about 4GW, supported by ongoing opportunities in solar, transmission and storage projects that could drive further contract wins.
Both research houses said earnings estimates remain largely unchanged, with the latest contract seen as supportive of long-term growth visibility.
They continue to favour Gamuda on robust orderbook momentum, accelerating renewable energy exposure and steady execution across infrastructure and utilities expansion.
As of 11.33 am, the stock price gained 0.23% to RM4.41.
