PETALING JAYA – Gamuda Bhd shares tumbled to an 11-month low on Monday, March 9, declining 6.3% to RM3.89 in early trading following the group’s weaker-than-expected first-half earnings reported on March 6. Despite the market reaction, insider activity and institutional buying signal confidence in the company’s long-term growth trajectory.
The Employees Provident Fund (EPF) purchased 421,600 Gamuda shares on March 4, continuing its pattern of strategic accumulation. Meanwhile, director Ha Tiing Tai opted to receive physical shares instead of cash from an autocallable structured product, retaining 96,700 shares despite a paper loss of roughly 17%. Executive director Faris Mohd Yusof sold a minor portion of his holdings, approximately 0.03%, reflecting a liquidity need rather than a directional signal.
These actions suggest that long-term stakeholders are betting on Gamuda’s pipeline and future earnings growth, even as the share price temporarily dips.
Gamuda, Malaysia’s largest infrastructure contractor, often experiences revenue delays relative to project wins, a characteristic of long-cycle construction businesses. Research by Malacca Securities shows Gamuda’s construction order book stood at RM44 billion as of January 31, 2026, supported by about RM8 billion in unbilled property sales—approximately 3.5 times FY2025 revenue of RM15.97 billion.
Analysts from Kenanga Investment Bank highlight that the recent revenue slowdown is linked to the natural progression of project phases rather than execution problems. They expect earnings to accelerate in the second half of FY2026 as construction activity intensifies and margins expand.
Gamuda aims to grow its order book to RM50 billion by December 2026, requiring roughly RM20 billion in new project wins this year. Key contributors to this pipeline include:
Sabah water treatment plant: RM3–4 billion
Penang LRT systems: RM3 billion
Interstate water transfer (Perak to Penang) under the RM5 billion Northern Perak Water Supply Scheme
Data centre developments, accounting for 8–10% of the order book
Renewable energy projects in Queensland, Australia, and Malaysia
Taiwan MRT packages: RM3–4 billion
Australian high-speed rail tenders connecting Newcastle and Sydney
CGS International projects that each RM2.5 billion in new orders could lift FY2027 earnings per share by around 3%.
Despite the share decline, analyst sentiment remains strongly positive. Of 21 research houses covering Gamuda, 20 maintain “Buy” ratings, with a 12-month target price averaging RM5.62, implying about 43% upside. Analysts note that earnings historically peak in the fourth quarter as projects move up the execution curve.
Gamuda’s property division continues to contribute steadily, with RM8 billion in unbilled sales as of October 2025. FY2026 property sales targets of RM5.5 billion are considered achievable, supported by launches exceeding RM2 billion in Malaysia and fast-turnaround projects in Vietnam.
The group has also shifted focus toward recurring income streams, including:
Renewable energy projects with Gentari (Petronas) under the CRESS scheme
Solar farms with SD Guthrie
Cloud infrastructure partnerships with Dagang NeXchange Bhd
Ulu Padas hydroelectric project in Sabah
Northern Perak Water Supply Scheme, a 40-year concession
Solar and battery storage projects in Australia and Malaysia
While Gamuda’s H1 FY2026 earnings fell short of expectations, the miss appears to be timing-related within the construction project cycle, rather than a structural decline in operations. With strong order book visibility, ongoing property sales, and recurring-income initiatives, the company is well-positioned for growth.
For investors and property stakeholders in industrial land in Selangor, office space in Bukit Jalil, factories in Puchong, commercial property in KL, or industrial property in Subang area, Gamuda’s infrastructure and property projects signal long-term opportunities in Malaysia’s property and construction markets, reinforcing the link between infrastructure growth and real estate demand.
Indonesia