Gamuda's Shares Up After Securing Taiwan MRT Contract

KUALA LUMPUR, Oct 15 (Bernama) -- Gamuda Bhd’s shares rose on Bursa Malaysia after announcing that its joint venture (JV) with Taiwan-based MiTAC Information Technology Corp has secured a RM3.7 billion contract to build the Keelung Mass Rapid Transit (MRT) system and trackwork in Taiwan.

Gamuda holds a 72.84 per cent participating interest in the JV, with its share of the contract amounting to approximately RM2.71 billion, while MiTAC holds the remaining 27.16 per cent.

The contract was awarded yesterday by New Taipei City Government’s Department of Rapid Transit Systems.

 At 12.19 pm, the stock had risen two sen to RM4.87, with 4.93 million shares traded.

In a note, Kenanga Investment Bank (Kenanga IB) said Gamuda remains the frontrunner for upcoming tenders at the Springhill data centre campus in Port Dickson, Negeri Sembilan, having successfully secured all four contracts awarded since April.

“On the domestic front, another notable project in the pipeline is the Northern Perak water project. Regionally, it has also been shortlisted for the New South Wales (NSW) high-speed rail project, infrastructure projects in Brisbane, and the Northland Corridor Highway in New Zealand,” it said. 

The investment bank maintained its construction job-win assumptions of RM30 billion and RM25 billion for Gamuda’s financial years (FY) 2027 and 2028, respectively, while forecasting net profit of RM1.39 billion in FY2027 and RM1.78 billion in FY2028.

“We continue to like Gamuda for its strong positioning in upcoming data centre tenders, its ability to secure overseas projects, robust earnings visibility underpinned by a record outstanding order book of RM63.9 billion, and its inroads into the renewable energy space,” it said. 

Overall, Kenanga IB reiterated its ‘outperform’ recommendation on Gamuda and maintained its target price for Gamuda’s shares at RM5.90. 

-- BERNAMA