Gamuda Remains Top Construction Pick as MBSB Maintains BUY

KUALA LUMPUR — MBSB Research has maintained a BUY recommendation on Gamuda Berhad with a revised sum-of-the-parts target price of RM5.86, lowered from RM6.35 previously. The revision reflects adjustments to earnings projections mainly due to the timing of profit recognition from ongoing projects.

Despite the earnings revision, the group remains the research house’s top pick for the construction sector, supported by a record order book of RM45.99 billion and a geographically diversified portfolio spanning construction and property developments. Gamuda is also expanding into the utilities sector to rebuild a recurring income stream following its exit from the toll concession business in 2022.

Gamuda – Top Construction Pick

MBSB noted that earnings estimates were reduced after reassessing the pace of construction progress and profit recognition, as many recently secured projects remain at the early stages of development. Progress is expected to accelerate in FY27 and FY28 once these projects move further along the construction cycle.

Gamuda’s order book reached an all-time high after securing three new contracts in December 2025, surpassing its CY25 target of RM40 billion to RM45 billion. The company is now targeting RM50 billion in outstanding jobs by end-2026, supported by opportunities in rail, water infrastructure, data centres and renewable energy projects.

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