Beautiful sunset and sunrise in George Town, the main tourist attraction in Penang, Malaysia
A unit of construction company Gamuda, co-founded by Malaysian tycoon Lim Yoon Ling, has won an 8.3 billion ringgit ($1.8 billion) contract to design and build a commuter rail project in Penang, northern Malaysia.
The SRS consortium, in which Gamuda holds a 60% stake, will build the 23.7-km Pearl Line Penang LRT project, Gamuda said in a regulatory filing on Monday.
Kenanga Investment Bank analyst Teh Kian Yeong wrote in a research note today that the project will bring Gamuda's order book to a record high of RM37 billion, and is expected to achieve its order book target of up to RM45 billion this year. “More contracts are in the pipeline, such as a water treatment plant in Sabah, several data center contracts and projects in Australia,” Cheng said.
With a strong order book, the brokerage expects the company's net profit to rise 46% to RM1.3 billion in the current year to July 2025 and reach RM1.7 billion the following year. It maintained its outperform rating on Gamuda and raised its target price to RM5.46 from RM5.40. The stock rose 0.2% to 4.80 ringgit in early trade in Kuala Lumpur.
Founded in 1976 by Lin and partner Koon Yew Yin, Gamuda has grown from a construction company into one of Malaysia's most prominent infrastructure and real estate companies. In addition to the domestic market, Gamuda also has projects in Australia, Singapore, Taiwan, the United Kingdom and Vietnam.
