Gamuda Assume coverage with Neutral; booked out

Research evidence excerpt

Gamuda Assume coverage with Neutral; booked out

Global Research

29 June 2026ab

Gamuda Equities

MalaysiaAssume coverage with Neutral; booked out

Heavy Construction

12-month rating Neutral

Execution must now justify the re-rating Prior : Buy

We assume coverage on Gamuda with a Neutral rating and end-Jun 2027 PT of RM4.70. 12m price target RM4.70

Gamuda's order book has been rebased to record levels, rising 2.5x from RM20.6bn in Prior : RM5.80

FY23 to RM52.3bn currently. This has driven a sharp valuation re-rating, with its NTM

Price (26 Jun 2026) RM4.25

PE rising to 21x, above +1SD above its 5-year mean (Figure 1Valuationhasre-ratedsince2023onexpectationsoforderbokgrowth). However, we think the

easy part of the re-rating has largely played out. Despite continued contract wins, the RIC: GAMU.KL BBG: GAM MK

recent share price reaction has been less responsive (Figure 2Thesharepricehasbecomeincreasinglylesreactivetowardspositivenewsflowasfocusshiftstoearningsdelivery), suggesting investors are

Trading data and key metrics

shifting focus from headline replenishment to earnings delivery.

52-wk range RM5.70-3.73

Balance sheet ceiling is becoming more relevant Market cap. RM25.3b/US$6.20b

Shares o/s 5,963m (ORD)

Gamuda's record order book provides a strong earnings base, but we think further

Free float 66%

expansion is becoming increasingly constrained by group balance sheet capacity.

Property-related funding has absorbed a large share of group debt headroom, while Avg. daily volume ('000) 15,955

incremental construction wins still require balance sheet support (Figure 3Netcontractasetshaveturnedpositivealongsideorderbokgrowth,sugestinghigherbalanceshetintensity). Gamuda's Avg. daily value (m) RM67.5