Gamuda Bhd shares fell 1.04% to RM4.75 as of 3.24 pm, extending recent weakness despite the construction group’s record RM61.6 billion orderbook and positive outlook from CGS International.
The stock opened at RM4.82 and climbed to an intraday high of RM4.91 before falling to a low of RM4.73. Some 8.76 million shares changed hands, with 936 (’00) shares queued at the buy price of RM4.75 against 3,025 (’00) shares at RM4.76 on the sell side.
Gamuda’s previous close was RM4.80.
The latest share price remains below CGS International’s recently raised target price of RM6.05. The research house maintained its ADD call, citing Gamuda’s record orderbook, improving earnings visibility and exposure across infrastructure and property markets.
As at September, Gamuda’s orderbook stood at RM61.6 billion, with about 79% of projects still in the early execution stage of between zero and 20% completion. CGS expects the group to potentially end 2026 with an orderbook of around RM60 billion, supported by a visible pipeline of new contracts.
The research house said the lack of a stronger recovery in construction margins has been one of the concerns weighing on the stock. However, it expects margins to improve as newer projects move further along their construction cycles.
CGS also expects data centre projects to provide some upside, raising its FY2027 and FY2028 earnings per share forecasts by between 2% and 6% on expectations of stronger margins.
Another concern has been Gamuda’s net gearing, which stood at about 0.7 times as of April 2026. CGS views the elevated gearing as largely temporary following the acquisition of four land parcels in Vietnam for quick-turnaround property developments.
The group is targeting RM7 billion in property presales for FY2027, supported by a RM10 billion launch pipeline. CGS expects interest coverage to remain comfortable at an estimated 7.6 to 9 times for FY2026 and FY2027.
Foreign shareholding also fell to 23.6% in August, its lowest level since January 2024, which CGS believes leaves room for renewed foreign participation if earnings momentum improves.
While data centres have become a major focus for investors, they account for only about 15% of Gamuda’s total orderbook. CGS said the group’s broader exposure across Malaysia, Taiwan, Singapore and Australia provides greater earnings visibility and reduces reliance on any single infrastructure segment.
The research house expects further construction wins, stronger property sales and easing raw material costs to support a potential re-rating, while delays in contract awards and higher construction material costs remain key downside risks.
