KUALA LUMPUR: Gamuda Bhd
's shares gained momentum during the early trading session today following the announcement of positive financial results for the first quarter of its 2025 financial year (1Q FY2025).
At 11 am, Gamuda shares rose 15 sen to RM9.75 per share with 1.53 million shares traded.
Gamuda reported a net profit of RM205.39 million for 1Q 2025 from RM195.04 million in the same period a year ago, while revenue surged to RM4.14 billion from RM2.80 billion previously, driven by stronger construction revenue from overseas and domestic projects.
The group highlighted that its performance for 2025 performance will be largely driven by overseas and domestic construction activities, including the construction of several data centres and higher contributions from the property division’s various quick-turnaround projects (QTP).
Gamuda's resilience is further supported by its record-high construction order book of RM30 billion and unbilled property sales of RM6.9 billion.
Hong Leong Investment Bank Bhd (HLIB) expects a pick-up in progress for its newly awarded higher-margin domestic construction projects to drive earnings in the second half of 2025, as stated in a note today.
HLIB pointed out that Gamuda is on track to meet its RM40-45 billion order book target by the end of 2025, with a potential upside with the initial target of doubling revenues to RM30 billion in 2028, which could come earlier in 2027.
The bank also views Gamuda’s differentiated approach to data centres as a “low risk, high reward” venture, with the potential for long-term contract streams.
HLIB adjusted Gamuda's core profit forecasts for FY2026 and FY2027 upwards by 1.7 per cent and 2.6 per cent, respectively, and maintained a “buy” rating with a higher target price (TP) of RM11.03 per share.
Meanwhile, RHB Investment Bank Bhd also expressed confidence in Gamuda’s growth trajectory, citing stronger quarters ahead due to higher progress billings from projects in Australia and Vietnam.
"We continue to favour Gamuda for its steady flow of job wins of at least RM15 billion annually for FY2024-2027 and a better portion of higher-margin domestic jobs ahead. This backs our three-year earnings compound annual growth rate for FY2024-2027 forecast of 21 per cent. We keep a 'buy' call with a TP of RM11.67 per share," it added. - Bernama
