RHB Investment Bank Bhd (RHB Research) maintained its BUY call on Gamuda Bhd with a new target price of RM6.02 from RM6.11, implying 37% upside, while Hong Leong Investment Bank Bhd (HLIB) also kept its BUY call with an unchanged RM5.27 target price after the group secured a RM1.71 billion hyperscale data centre contract in Port Dickson.
The project, awarded by a US-headquartered multinational corporation, covers site infrastructure, core and shell construction as well as mechanical, electrical and plumbing fit-out works. Construction is expected to begin in the third quarter of 2026 and finish in the second quarter of 2028.
RHB Research expects the project to contribute a profit before tax margin of around 8%, with a cost pass-through mechanism that places most construction risks, including material costs, on the client. HLIB similarly expects an approximately 8% margin on a cost-plus basis.
The latest award lifts Gamuda’s unbilled orderbook to around RM54 billion, with data centre projects accounting for about 10% to 11% of the total. HLIB noted this is the group’s second data centre package at the same Port Dickson site and expects another six to seven facilities of similar size could eventually be developed there.
RHB Research said Gamuda would need to secure another RM2.5 billion to RM7.5 billion in contracts for the rest of 2026 to maintain its targeted RM50 billion to RM55 billion orderbook, a target it considers achievable given tenders of up to RM50 billion across Malaysia, Australia, Singapore and Taiwan.
As of 9.54 am, the stock price gained 0.45% to RM4.43.
