KUALA LUMPUR: Shares in Gamuda Bhd
jumped over 2% on Wednesday to a fresh record high as it extended gains over the previous day on the back of its RM4.3bil mass rapid transit (MRT) project win in Taiwan.
In the previous session, the trading stock of the construction and engineering group climbed 34 sen or 4.15% to an all-time high of RM8.54 after the announcement was made during the midday lunch break.
Investors continued to swoop into the stock on Wednesday, bringing it 22 sen or 2.58% higher to RM8.76 a share at the time of writing after 5.57 million shares changed hands.
In the announcement, Gamuda said its unincorporated joint venture with two Taiwan companies had secured the contract to design and build the Xizhi Donghu MRT turnkey project in Taiwan from the Department of Rapid Transit Systems of the New Taipei City Government.
With a 75% stake in the JV, Gamuda's efective share of the contract comes to RM3.2bil.
Additionally, the JV is under obligation to undertake already-determined additional works, upon instruction from the Taipei City governemnt, valued at about TWD80bil (RM10.8bil), of which RM8.1bil will go to Gamuda.
The additional works cover the Xizhi Donghu Line maintenance depot plus the system and track works
for two extension lines which are the Keelung Line MRT and Minsheng Line MRT.
In RHB Research's report on the development, it said Gamuda's latest outstanding orderbook is estimated at RM28.7bil, which brings it close to its RM30bil target by year-end.
New job wins for FY25, meanwhile, stand at about RM4bil, excluding the RM8.1bil additional works from the Taipei government as the awards and billings are only expected to take place within the next three years, at the earliers.
This compares to RHB's job replenishment target of RM20bil.
RHB maintained its "buy" call on Gamuda and target price of RM9.79 as the latest job win is within its FY25 job replenishment assumption.
Kenanga Research also has an "outperform" call on Gamuda with a target price of RM9.20. The research firm said its new job wins forecast for FY25 stands at a conservative RM14.5bil as compared to Gamuda's target of RM30bil.
MIDF Research maintained "buy" on the share and upgraded its target price to RM9.64 from RM9.01 previously.
