KUALA LUMPUR, Jan 14 (Bernama) -- Gamuda Bhd’s share price on Bursa Malaysia was higher at mid-morning after its consortium was appointed as the main contractor to deliver the first civil works package worth over RM8 billion for the Penang Light Rail Transit (LRT) project.
At 11.10 am, the counter stood at RM4.79, with 14.92 million shares traded.
The joint venture consortium is 60 per cent owned by Gamuda, with Loh Phoy Yen Holdings Sdn Bhd and Ideal Property Development Sdn Bhd, each holding a 20 per cent stake.
Meanwhile, MRT Mutiara Sdn Bhd, a fully owned subsidiary of MRT Corp, is the project developer and asset owner of the LRT Mutiara Line.
The Penang Mutiara LRT Line project is set to be built in two phases, stretching 29.5 km with a total of 21 stations. It will connect key areas of Penang Island and the mainland.
Following the contract win, the majority of analysts have maintained their buy ratings on Gamuda and kept their earnings forecasts unchanged.
In a research note today, Maybank Investment Bank Bhd (Maybank IB) said Gamuda’s latest engineering and construction win for the Penang LRT Mutiara Line had lifted its outstanding order book to RM37 billion, further strengthening its earnings visibility.
It said this is Gamuda’s third major metro rail project in Malaysia after successfully delivering Klang Valley Mass Rapid Transit 1 (KVMRT 1) in 2017 and KVMRT 2 in 2023.
“Assuming eight per cent profit before tax margin, we estimate RM303 million net profit (5.4 sen earning per share) contribution into FY2032E from this new Penang LRT job.
“We make no change to our forecasts, which have imputed RM20 billion per annum job win assumption,” it said.
RHB Investment Bank has kept its earnings estimates and target price of RM5.83 for Gamuda, as the latest job win aligns with its FY2025 assumptions.
It maintained that Gamuda is undervalued, trading at 18.9x FY2026F P/E, close to its 2017 upcycle level.
“Key rerating catalysts include potential early wins for Gamuda’s AU$25 billion (AU$1 = RM2.79) renewable energy projects in Australia,” it said.
MIDF Amanah Investment Bank Bhd (MIDF) said it is positive on the official contract award of the main Penang LRT package to Gamuda, which marks the certainty of the mega project moving forward and in tune with the timeline set by the government.
“Gamuda remains our favourite for the construction sector, backed by its successful overseas expansion plan, consistency in clinching sizeable jobs, and being a front runner for most mega projects in Malaysia.
“All in, we are maintaining our buy recommendation on Gamuda, with an unchanged target price of RM5.42,” it added.
-- BERNAMA
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