GAMUDA: Major Contract Win Boosts Order Book, Outlook Steady
| Investment Bank | PublicInvest Research |
|---|---|
| TP (Target Price) | RM6.20 (+11.5%) |
| Last Traded | RM5.56 |
| Recommendation |
A leading construction firm has secured a significant RM2.1 billion contract to build two data centre blocks. This substantial award is for Eco World Development Group’s wholly-owned subsidiary, Quantum Alpha Sdn Bhd (QASB), located in Eco Business Park V, Selangor. The new project is viewed positively by analysts at PublicInvest Research, who highlighted the group’s proven expertise in executing fast-track data centre developments, reinforcing its position in this growing sector.
Project Details and Impact
The contract specifically entails the construction, completion, testing, and commissioning of the shell and core of two data centre blocks, a consumer substation, a water reservoir, and associated infrastructure and ancillary facilities. Work is slated to commence in Q3 2025 and is projected for completion by Q3 2027.
This latest achievement will boost the firm’s total outstanding order book to approximately RM39.8 billion, based on PublicInvest Research’s estimates. Furthermore, the unbilled order book is set to increase by 5.6%, reaching RM35.1 billion, providing strong revenue visibility for the coming years.
Analyst View and Outlook
Despite the encouraging contract win, PublicInvest Research notes that this award falls within their existing assumption of RM16 billion worth of new jobs for the 2025 calendar year. Consequently, the firm’s earnings forecasts, its “Outperform” rating, and a SOP-derived target price of RM6.20 remain unchanged. The target price implies an expected return of +11.5% from the last traded price of RM5.56, indicating continued confidence in the company’s performance and strategic direction.
