Gamuda Wins Major Kaohsiung MRT Project (GAM MK, Outperform, TP: RM5.60)

Gamuda, together with Taiwan-based Shang Ting Construction, has been awarded a NTD26.39bn (RM3.3bn) contract by the Kaohsiung City Government Mass Rapid Transit Bureau for the construction of the Xiaogang-Linyuan MRT Line (Red Line RLC02).

Under an unincorporated Joint Venture (JV), Gamuda holds a 70% stake, and Shang Ting holds the remaining 30%, giving Gamuda a share of the contract value worth NTD18.48bn (RM2.31bn). The 7.4-year project includes three underground stations, one elevated station, 3.88km of twin-bore tunnels, and six cross passages.

Gamuda Kaohsiung MRT Project

Key risks such as labour shortages and fuel price fluctuations are partly mitigated by a price variation mechanism. This new job win brings Gamuda’s total outstanding orderbook to an estimated RM51.6bn.

All told, analysts say they keep their forecasts unchanged as this contract falls within the existing projection of RM20.0bn in new contract wins by the end of CY26.

“As such, we retain our Outperform call on Gamuda with unchanged SOTP-based TP of RM5.60,” analysts say.

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