Gamuda on course with targets for E&C, property ops

KUCHING: Gamuda Bhd (Gamuda) is on course in its targets for its engineering and construction (E&C) and property operations, analysts at Maybank Investment Bank Bhd’s research team (Maybank IB Research) said.

“Amid choppy waters in the broad construction sector – volatile material prices, labour shortages and slow award of new projects - Gamuda is on course in its targets for its E&C and property ops.

“It has also identified a green-field renewable energy venture to rebuild its recurring income base after the sale of its highway concessions,” it said in a report.

Having secured RM11.7 billion of new contracts in FY22-YTD (73 per cent in Australia, 17 per cent in

Malaysia, eight per cent in Singapore, two per cent in Taiwan), the research team noted that Gamuda is very optimistic of hitting its RM20 billion order book replenishment target by endFY23.

It will also team up with MMC (not listed) in a 50:50 joint venture for the KVMRT3 Package 3 (CMC 303) tender which has a value of an estimated more than RM10 billion.

“Other major potential projects are the PSI and SMART2. Its outstanding orderbook now stands at RM14.4 billion of which 60 per cent are projects in Australia, 25 per cent in Malaysia, nine per cent in Singapore and six per cent in Taiwan,” it added.

Aside from that, Maybank IB Research noted that Gamuda plans to replace all its highway earnings – after its sale – by FY24, from its E&C op, based on its RM20 billion orderbook replenishment target by end-FY23, and its property op, based on higher RM5 billion pre-sales target for FY23 (compared with RM4 billion for FY22) and RM6 billion for FY24 coming from its maturing township developments in Malaysia (such as the G Gardens, G Cove, twentyfive.7), and new quick turnaround projects (QTP) which will be launched in London, Australia, Vietnam and Malaysia. It has two parcels of land in London presently with an estimated. total GDV of 141 million pounds for quick turnaround.