Gamuda

[winston]

not vested

5398 Gamuda (BUY)
Looking sunny down under

Gamuda’s briefing held yesterday reaffirmed strong prospects across its Australian operations, anchored by huge opportunity pipeline of over AUD128bn (RM346bn) in the next few years - a scale we believe remains underappreciated by the market.

DTI is targeting to double its orderbook to AUD5bn while GEA is pursuing large EPC+equity projects in transmission, RE and rail.

These opportunities align with IA25’s upgraded MPIP of AUD242bn (+14% YoY), led by a major uplift in utilities.

Minor tweaks to FY26f/27f forecasts, introduce FY28f core PATAMI of RM2.1bn. Maintain BUY and unchanged TP of RM6.88.

Source: HLIB

[winston]

not vested

Big plans Down Under

Maintain BUY call and MYR6.17 SOTP-TP

GAM hosted an investor briefing to highlight its Australian operations.

We note that GAM has traditionally favoured its Malaysian and Taiwanese operations instead.

Yet, we found the investor briefing insightful for the bevy of megaprojects on offer and the potential for margin uplift in Australia.

In summary, we are reassured that our annual job wins assumption of MYR25.0b would be met.

We maintain our earnings estimates, BUY call and MYR6.17 SOTP-TP.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/499399.pdf

[winston]

Gamuda (BUY)
1QFY26 inline

Gamuda reported 1QFY26 core PATAMI of RM207.2m, meeting our and consensus expectations.

Management remains confident of hitting its year-end orderbook target of RM40–45bn, with recent moderation largely attributable to minor timing issues in job awards.

We foresee sizable near-term project conversions, while CY26 contract visibility remains strong with a robust slate of highly certain opportunities.

Property contribution should continue accelerating remaining quarters of FY26 supported by record high unbilled sales of RM8bn.

No change to forecasts. Maintain BUY rating with unchanged TP of RM6.88.

Source: HLIB

[winston]

not vested

1QFY26: Slow start to the new financial year

Maintain BUY with lower SOTP-TP of MYR5.79 (-6%)

GAM’s earnings and dividends missed our expectations but due more to the near completion of major Australian jobs.

Going forward, GAM expects job wins to catch up in 1HCY26 or 2HFY26.

Reflecting delayed execution of job wins from 2HFY26 moderated by earnings contributions from Chencharu Close, we tweak our FY26/FY27/FY28 earnings by -13%/6%/+11% and trim our SOTP-TP to MYR5.79 from MYR6.17.

Should GAM’s share price ease today, we encourage investors to BUY on weakness.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/504262.pdf