KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) is maintaining its forecast for Gamuda Bhd, despite a 2.8 per cent increase in the company's outstanding construction order book, which now stands at RM25.5 billion following a A$243 million (RM702 million) contract win in Queensland, Australia.
"While we view the contract win positively, we maintain our forecast as this is already included in our FY25 (fiscal year 2025) order book replenishment assumption of RM16 billion," it said in a note.
"We retain our Outperform rating on Gamuda, with an unchanged target price of RM9.20."
PublicInvest said with this new contract win, Gamuda's outstanding orderbook represents about 4.3 per cent of its FY25 orderbook replenishment target.
"The project is expected to contribute approximately one per cent per annum on average, to the company's earnings over the 32.5-month' contract period," it said in a note.
Gamuda's wholly owned subsidiary in Australia, DT Infrastructure Pty Ltd (DTI), has secured a contract to deliver the construction works of the Boulder Creek Wind Farm Project from Aula Energy and CS Energy.
According to PublicInvest, DTI has been awarded the balance of the plant for civil and electrical works.
It said this includes the construction of 41 kilometres of access tracks with grades up to 15 per cent and about 700,000 m3 of cut/fill bulk earthworks.
"Construction works are slated to begin in the second quarter (Q2) of Y25, with completion expected by FY27.