Kenanga Research has maintained its Outperform call on Gamuda Bhd and raised its target price to RM5.90, citing the group’s record construction order book, strong overseas project pipeline and growing exposure to renewable energy.
Gamuda’s FY2026 net profit rose 5% year-on-year to RM1.05 billion, broadly in line with expectations, accounting for 100% of Kenanga’s and 101% of consensus full-year forecasts.
Revenue increased 14% for the year, driven largely by strong execution at Gamuda Engineering, particularly its domestic data centre projects.
Gamuda Engineering’s full-year earnings climbed 17% to RM939.6 million, supported by an 18% increase in revenue, while Gamuda Land’s earnings rose 5% on stronger contributions from quick-turnaround projects in Vietnam.
For the fourth quarter, net profit jumped 36% quarter-on-quarter to RM349.7 million as revenue increased 30%. Gamuda Land’s pre-tax profit more than doubled to RM215.5 million, while Gamuda Engineering’s earnings slipped 1% to RM281.5 million.
RM35 Billion In FY26 Job Wins
Kenanga said Gamuda Engineering secured RM35 billion of new jobs in FY2026, up from RM25 billion a year earlier, with management targeting a similar pace of contract wins in FY2027.
Management also raised construction revenue guidance to RM24 billion for FY2027, RM29 billion for FY2028 and RM35 billion for FY2029.
Gamuda’s outstanding order book stood at a record RM61.2 billion, giving the group substantial earnings visibility.
In Australia, three major projects — Sydney Metro West’s Western Tunnelling Package, the Coffs Harbour Bypass and the M1 Pacific Motorway extension — are nearing completion or have been completed. Kenanga said Gamuda Engineering Australia is expected to recognise early-completion bonuses from these projects in FY2027.
The Australian arm tendered for more than A$15 billion worth of jobs in FY2026, compared with less than A$5 billion in FY2024, and is among three shortlisted contenders for the New South Wales high-speed rail project.
Gamuda’s DT Infrastructure has also expanded into the energy market, winning seven major projects involving 2,164MW of renewable generation capacity, 750MW of transmission infrastructure and 949MW of storage capacity.
Renewable Energy Adds New Growth Avenue
Kenanga also highlighted Gamuda’s emerging renewable energy pipeline.
Gamuda and its joint-venture partners, SD Guthrie and Gentari, recently entered into a Corporate Renewable Energy Supply Scheme agreement with a US-based technology company involving a proposed 680MWac renewable energy project in Perak.
The project could generate more than RM10 billion in gross revenue over its proposed tenure.
Based on the installed capacity, Kenanga estimates the engineering, procurement, construction and commissioning contract could be worth RM3 billion to RM3.5 billion, which it believes is likely to be awarded to Gamuda.
The research house also expects two additional CRESS projects that could collectively provide another RM6 billion to RM7 billion of potential EPCC opportunities.
Property Sales Miss Target
Gamuda Land, however, ended FY2026 with sales of RM3.2 billion, RM800 million below its target, with the shortfall split evenly between Malaysia and Vietnam.
For FY2027, the property arm plans RM9.7 billion worth of quick-turnaround project launches across six cities, alongside major developments including the RM4 billion Chencharu project in Singapore.
Kenanga cut its FY2027 property revenue assumption to RM3.5 billion from RM5 billion while raising its construction revenue assumption to RM21 billion from RM18 billion, resulting in no change to its FY2027 earnings forecast.
For FY2028, it raised its construction revenue assumption to RM25 billion from RM22 billion, lifting its earnings forecast by 9.8%.
Gearing Expected To Ease
Gamuda’s net gearing rose to 72% as at July 2026, temporarily exceeding its internal ceiling of 70%.
Management attributed the increase to strategic land acquisitions in Singapore and Vietnam. Kenanga expects leverage to moderate during FY2027 as construction cash flows improve and property handovers begin in Vietnam.
The research house said Gamuda remains well positioned to benefit from upcoming data centre tenders, overseas infrastructure opportunities, its RM61.2 billion outstanding order book and expansion into renewable energy.
Following its earnings revision, Kenanga raised its sum-of-parts-based target price to RM5.90, while retaining a 5% ESG premium in its valuation.
