FY27F earnings jump looks more certain: Stock should re-rate as earnings inflection approaching; maintain Buy

Research evidence excerpt

FY27F earnings jump looks more certain: Stock should re-rate as earnings inflection approaching; maintain Buy

Global Markets Research

Gamuda GAMU.KL GAM MK 26 June 2026

EQUITY: ENGINEERING & CONSTRUCTION

RatingFY27F earnings jump looks more certain Remains Buy

Target priceStock should re-rate as earnings inflection approaching; Increased from MYR 5.10maintain Buy MYR 5.00

9M26 sees encouraging earnings pick-up Closing25 June price2026 MYR 4.25

Gamuda’s 3QFY26 earnings recorded an encouraging q-q and y-y pickup, with net income rising

to MYR258mn (+12% q-q/+5% y-y) and 9MFY26 forming 67%/66% of our previous/consensus Implied upside +20.0%

full-year estimates. However, with 4Q typically seeing a pick-up in previous years, and the

likelihood of FY26E earnings being flat over FY25’s MYR 1bn having been already well-flagged, Market Cap (USD mn) 6,158.7

we think investors will start focussing on FY27F earnings trajectory now. We think that the ADT (USD mn) 17.1

visibility on construction earnings to improve meaningfully in FY27E is looking more certain due

to recent spate of project awards which should move to higher revenue and margin phases, and Relative performance chart

de-escalation in Iran war which is already leading to easing margin risks. Also, property earnings

are likely to see a stronger uplift in FY28E as new Vietnam and Singapore developments begin

contributing. Gamuda’s order book remains at a record MYR52bn with continued tender

momentum, particularly in Australia and Malaysia, and we now see upside to the MYR50bn of

orderbook milestone by end-CY26.

Property growth to be driven by Vietnam pipeline/new launches; new Vietnam sites secured

Management lowered FY26E sales guidance to MYR 4bn due to delays in the Hanoi launch,