MBSB Research has maintained its “Buy” recommendation on Gamuda Berhad with an unchanged target price of RM5.60, citing the group’s strong order book, diversified earnings base and growing presence in renewable energy infrastructure.
The brokerage continues to rank Gamuda as its top pick within the construction sector, supported by a record order book of RM55.4 billion and a geographically diversified portfolio spanning construction and property development across multiple markets.
MBSB said the group’s latest move into Australia’s renewable energy sector further reinforces its strategy of building recurring income streams through infrastructure ownership.
Expands Renewable Energy Presence in Australia
Through its subsidiary, Gamuda Renewables Pty Ltd, the company recently acquired an option interest in the Hazelwood North Solar Farm and Battery Energy Storage System project in Victoria.
The project comprises a 450-megawatt solar farm integrated with a four-hour, 1,800-megawatt-hour battery energy storage system across a 1,100-hectare site in the Latrobe Valley.
Construction is targeted to begin in 2028, with commercial operations expected by 2030.
However, MBSB noted that Gamuda’s financial commitment remains limited at this stage as the group has only acquired an option interest in the project rather than a full ownership stake.
Management has not disclosed the financial terms of the acquisition.
Data Centre Opportunity Adds Strategic Upside
Beyond renewable energy generation, Gamuda and its project partner, Manthos Investments Pty Ltd, are exploring the development of a co-located data centre within the project site.
The proposed integration would allow the data centre to draw power directly from the solar farm and battery storage system, creating a self-sustaining renewable-powered digital infrastructure ecosystem.
MBSB views the initiative positively, noting that it aligns with Gamuda’s growing exposure to two key long-term growth themes — renewable energy and data centres.
The brokerage said the combination could enhance the project’s long-term value while creating potential synergies between Gamuda’s infrastructure, energy and digital asset businesses.
Renewable Energy Ambitions Accelerating
The Hazelwood North acquisition marks Gamuda Renewables’ third asset within Australia’s National Electricity Market and its first renewable energy investment in Victoria.
MBSB highlighted that Gamuda has significantly accelerated its renewable energy ambitions in Australia, raising its target to develop, construct and operate 5 gigawatts of renewable energy assets by 2031.
The expansion is supported by the group’s strong balance sheet, construction expertise and growing execution capabilities within energy infrastructure projects.
Forecasts Unchanged
Given the option-based nature of the investment and the absence of financial details, MBSB left its earnings forecasts unchanged.
Nevertheless, the research house believes the transaction strengthens Gamuda’s long-term strategy of diversifying earnings through infrastructure ownership and recurring income generation.
The brokerage noted that Gamuda has increasingly leveraged its engineering expertise and financial strength to move beyond traditional contracting activities and build ownership stakes in long-term infrastructure assets.
Top Construction Sector Pick
MBSB maintained its RM5.60 target price, which is based on 23 times projected FY2027 earnings.
The research house said Gamuda’s record order book, diversified property operations, expanding renewable energy platform and growing participation in data centre-related opportunities position the group favourably for long-term growth.
It added that the company’s ability to create recurring revenue streams from infrastructure assets could further enhance earnings resilience and shareholder value over time.
