Gamuda Poised to Surpass Order Book Milestones
Gamuda Bhd is positioned to surpass its annual order book target of RM40 billion to RM45 billion, driven by a steady stream of robust project wins in the domestic market. The company’s strong performance and strategic focus on local infrastructure development have put it on a clear path to exceed its own ambitious goals. CGS International, a prominent research firm, projects that Gamuda’s secured contracts could reach an estimated RM42 billion by the end of the year, a testament to the company’s competitive edge. This projection, however, is considered conservative by the research house as it does not include several potential high-value projects that are still under consideration and could significantly boost the company’s total order book in the near future. This positive outlook signals to the market and investors that Gamuda has a healthy and sustainable pipeline of work, ensuring stable revenue streams for the coming years.
Diverse Pipeline Fuels Growth
The company’s impressive trajectory is underpinned by a diverse and extensive project pipeline that spans both domestic and international markets. Domestically, Gamuda is involved in major infrastructure developments such as the Penang Light Rail Transit system and the Inter-State Water Transfer project, both of which are critical for enhancing Malaysia’s connectivity and public utilities. Furthermore, the company has strategically expanded its reach internationally and has been shortlisted for several high-profile contracts. These include three early contractor involvement renewable energy projects in Australia, along with significant highway and railway projects in New Zealand and Brisbane. This global diversification is paying off, with Gamuda’s order book already standing at a solid RM37.2 billion as of June 2025, and year-to-date contract wins amounting to RM18.4 billion, showcasing its ability to compete and win bids on a global scale.
New Valuation Methods Point to Strong Share Price Potential
In a recent analysis, CGS International provided a fresh perspective on Gamuda’s valuation, shifting from a traditional sum-of-parts approach to a market capitalization-to-order book ratio. This new method better reflects the company’s strength and future potential. Based on a sustainable order book of RM42.5 billion, which is the midpoint of the company’s guidance, the research house has set a new target price of RM7.30 per share, indicating a strong upside. CGS International further noted that if Gamuda were to trade at its historical average market cap-to-order book ratio of 1.2 times, the implied market capitalization could reach a striking RM48 billion, which would translate to a price of RM8.30 per share. This analysis provides a compelling financial case for Gamuda, suggesting that its robust order book and diverse project pipeline could translate into significant value for shareholders in the near to medium term.
