CIMB Securities has maintained its BUY call on Gamuda Bhd with an unchanged target price of RM6.00, after its latest Sydney Metro contract lifted the group’s outstanding order book to a record RM61.6 billion.
The research house said Gamuda’s latest win for the Sydney Metro West Parramatta Integrated Station Development (ISD) further strengthens the Malaysian infrastructure group’s position in Australia’s major rail construction market, with about 35% of its outstanding order book now coming from Australia.
Sydney Metro on Sept 3 awarded the Parramatta ISD project to the Riverside Link Consortium, comprising Gamuda Engineering Pty Ltd, Gamuda (Australia) Pty Ltd and MTR Corporation (Australia) Pty Ltd.
The project consists of two components — the design and construction of the future Parramatta metro station and associated infrastructure, as well as development rights for buildings above and adjacent to the station.
Initial design and construction works are valued at A$880 million, or approximately RM2.5 billion.
Gamuda Engineering and MTR Australia will undertake the station works on an 80:20 basis, giving Gamuda an effective contract value of approximately RM2 billion.
Construction commenced on Sept 4, with completion targeted by 2032.
RM4.6 Billion Development Opportunity
Beyond the station contract, Gamuda and MTR Australia will establish a 50:50 partnership to pursue the associated property development.
CIMB estimates the proposed development has an initial gross development value of about A$1.6 billion, or RM4.6 billion, spread over approximately 12 years.
Development is expected to commence following completion and handover of the station works.
CIMB said the combination of infrastructure construction and associated development rights adds another dimension to Gamuda’s exposure to the Sydney Metro West project.
The research house also expects the Parramatta station works to potentially generate pre-tax margins of between 6% and 8%, compared with approximately 5% to 6% for Gamuda’s conventional Australian infrastructure projects.
This reflects the underground station design’s compatibility with Gamuda’s tunnelling expertise and potential operational efficiencies from its growing scale across the Sydney Metro West network.
CIMB noted that the contract also contains certain flexible terms and is already pegged to higher diesel and building material prices, which could provide some protection against cost pressures.
Third Major Sydney Metro Contract
The Parramatta ISD represents Gamuda’s third major contract win from Sydney Metro.
It follows the RM6.5 billion Western Tunnelling Package secured in 2022 and the RM7.3 billion Sydney Metro West Stations Package West awarded in 2025.
Including Parramatta, Gamuda has now secured involvement in six of the nine station packages along the Sydney Metro West line, according to CIMB.
The expanding footprint could generate economies of scale and operational efficiencies as Gamuda executes multiple packages within the same rail programme.
Further opportunities could also emerge.
CIMB said Gamuda is currently in the running for the Pyrmont Integrated Station Development package, which is expected to be awarded within the next two months.
Order Book Hits Record RM61.6 Billion
The latest award has pushed Gamuda’s outstanding order book to a record RM61.6 billion, providing substantial earnings visibility over the coming years.
New contract wins have surged to RM9.3 billion since August 2026.
Based on current project execution and order-book churn rates, CIMB now expects Gamuda to end calendar year 2026 with an order book of approximately RM55 billion, ahead of its initial RM50 billion target.
The research house remains constructive on Gamuda’s earnings prospects beyond its Australian infrastructure business.
Near-term earnings visibility is supported by approximately RM7 billion of data centre contract wins secured between April and August 2026, together with ongoing progress billings from its existing construction projects.
Meanwhile, cash flows in FY2027 and FY2028 are expected to be supported by RM7.5 billion in unbilled property sales.
With its record order book, expanding Australian footprint and strong pipeline across rail infrastructure and data centres, CIMB maintained its BUY recommendation and RM6.00 target price on Gamuda.
