Gamuda Berhad (GAM MK) Buy: 3Q26 results – Unlocking its massive backlog

Research evidence excerpt

Gamuda Berhad (GAM MK) Buy: 3Q26 results – Unlocking its massive backlog

26 June 2026

Equities Gamuda Berhad (GAM MK) Construction & Engineering

Buy: 3Q26 results – Unlocking its massive backlog Malaysia

◆ Record-high MYR52.3bn orderbook expected to be maintained

MAINTAIN BUY

by end-CY26, with MYR25.1bn won YTD/MYR11.7bn in 3Q26

◆ 2026 revenue recognition to remain flat with S-curve peaking TARGET PRICE (MYR) PREVIOUS TARGET (MYR)

in 2027-28 5.40 5.40

◆ Maintain Buy and MYR5.40 TP as we bake in new SHARE PRICE (MYR) UPSIDE/DOWNSIDE

construction wins 4.25 +27.1%

(as of 25 Jun 2026)

3Q26 missed our estimates due to lumpy recognitions: 3Q26 saw Construction

MARKET DATA

revenues increase 44% q-o-q and 57% y-o-y, while Property Development revenues Market cap (MYRm) 25,343 Free float 85%

continued to drag by -43% q-o-q and 21% y-o-y. With 75% of orderbook in the early Market cap (USDm) 6,125 BBG GAM MK

3m ADTV (USDm) 17 RIC GAMU.KL

stage of execution (0-10% progress), we expect Construction revenues to accelerate

in 2028 as projects take c1.5-2 years to reach peak S-curve revenue recognition. FINANCIALS AND RATIOS (MYR)

Property sales remain weak at MYR2.1bn, down from MYR2.5bn last year, due to Year to 07/2025a 07/2026e 07/2027e 07/2028e HSBC EPS 0.171 0.175 0.212 0.282

weaker-than-expected sales in Malaysia and fewer Vietnam launches. Hanoi HSBC EPS (prev) 0.171 0.172 0.209 0.287

Change (%) 0.0 1.6 1.1 -1.6

approval delays continue to hamper property sales expectations, with the timeline Consensus EPS 0.181 0.183 0.227 0.303

shifting to October 2026. We think that management’s MYR7bn property sales PE (x) 24.8 24.3 20.1 15.1

Dividend yield (%) 2.4 2.6 2.8 3.3

guidance is overly optimistic compared with our 2026 expectation of MYR4bn. EV/EBITDA (x) 14.7 13.6 11.6 9.2