Gamuda Bhd shares slipped 0.41% or two sen to RM4.82 as at 11.35 am, with 4.95 million shares changing hands following the group’s latest RM1.8 billion road contract win in Western Sydney.
The construction stock opened at RM4.84 and moved between RM4.79 and RM4.85 during the morning session, compared with its last adjusted closing price of RM4.84.
Gamuda recently secured an A$624 million (RM1.8 billion) contract through its 50:50 joint venture with B.M.D Constructions Pty Ltd to upgrade Elizabeth Drive and Mamre Road in New South Wales.
The project gives Gamuda an attributable contract value of A$312 million, or about RM908 million, and is expected to lift its outstanding order book to RM62.5 billion.
Construction on the 4.5-kilometre Elizabeth Drive and three-kilometre Mamre Road upgrade is scheduled to begin this month and is targeted for completion in 2030.
The latest win is Gamuda’s fourth road project in New South Wales, with RHB Research, MBSB Research, HLIB and CIMB Securities maintaining BUY calls on the group and target prices ranging from RM5.27 to RM6.20.
RHB expects the project to generate a pre-tax profit margin of about 5%, while MBSB highlighted stronger earnings visibility from Gamuda’s large order book.
CIMB said the contract further strengthens Gamuda’s position as a Tier 1 contractor in Australia, while HLIB pointed to potential upside from the group’s renewable energy pipeline under CRESS.
