Analyst raises Gamuda job win expectations after group shortlisted to develop Australian metro stations

• Gamuda is currently the main tunnelling contractor for the SMW Western Tunnelling Package, linking Sydney Olympic Park and Westmead through a joint venture (JV) with Laing O’Rourke.

KUALA LUMPUR (July 31): CIMB Securities has raised Gamuda Bhd’s (KL:GAMUDA) forecasted job wins for the financial year ending July 31, 2026 (FY2026) to RM22 billion and to RM25 billion for FY2027, after the group was shortlisted for two developments in Sydney, Australia.

CIMB added that the bids could potentially open doors to more jobs in the Sydney Metro West project, which is set to be Sydney’s largest metro and projected to cost A$25.3 billion (RM69 billion).

Gamuda is currently the main tunnelling contractor for the SMW Western Tunnelling Package, linking Sydney Olympic Park and Westmead through a joint venture (JV) with Laing O’Rourke.

It is also part of the Metrovista consortium, one of two shortlisted to build five standalone metro stations, with Gamuda’s effective share of works valued at around RM6 billion.

The research house noted that Gamuda Engineering Pty Ltd, a subsidiary of Gamuda, is exploring a JV with MTR Corp (Australia) for an integrated station and precinct development at Sydney Olympic Park.

This includes construction of a metro station and an over-station development (OSD), it added.

In June, Gamuda was also shortlisted for planning another JV with Billbergia and MTR Corp for an OSD project in the Parramatta Central Business District.

Gamuda’s prospects are boosted by support from MTR (Australia), a wholly owned unit of Hong Kong’s MTR Corp, known for its “rail-plus-property” model, said CIMB.

It noted that MTR (Australia) was a key delivery partner for Sydney Metro Northwest and currently manages operations for Sydney Metro City & Southwest, while also holding a stake in the Melbourne Metropolitan rail network.

As of early July, CIMB estimates Gamuda’s outstanding order book has grown to RM37.2 billion, including RM18.4 billion in contract wins so far in FY2025. The group remains on track to meet its year-end target of RM40–45 billion.

Gamuda’s tender book momentum remains resilient. Besides OSD projects in Australia, it is targeting at least RM7 billion in data centre-related contracts over the next three months. It is also bidding for about RM4 billion each from the Ulu Padas and Northern Perak water supply projects.

Additionally, the company secured around RM3 billion in new contracts from projects such as the Penang LRT, road works in East Malaysia, New Zealand’s Northland Corridor Highway, and the Sunshine Coast Highway in Brisbane. It also gained an RM8.1 billion share of extra works from Taiwan’s Xizhi Donghu MRT Line.

With higher expectations for Gamuda’s new contract wins, CIMB raised its profit forecasts for FY2026 to FY2028 by 3%-5%.

It expects FY2028 earnings to reach RM2.1 billion, a 21.5% increase from FY2027.

The research house has also raised its target share price for Gamuda to RM6.40 from RM5.50, which is based on a 15% discount to revalued net asset value.

"In our revised TP (target price), we peg the stock at a higher construction PE (price-earnings) multiple of 23 times (from 21 times) and roll over the valuation base to 2027," it added.

At 10am, shares of Gamuda stood at RM5.22, up three sen, giving it a market capitalisation of RM30.2 billion.

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