Gamuda Bhd is on course to solidify its status as a premier regional engineering and infrastructure powerhouse, underpinned by a robust project pipeline and sustained expansion into key international markets.
The company is expected to achieve an impressive order book totalling between RM40 billion and RM45 billion by the end of 2025. This trajectory is being propelled by its increasing foothold in high-potential markets and participation in major infrastructure initiatives.
According to MIDF Research, ongoing reports surrounding possible delays in the Sydney Metro West (SMW) project may actually present an upside for Gamuda. The research house noted that the group could stand to benefit from potential variation claims related to the delays.
Awarded in March 2022, the Western Tunnelling Package of the SMW project is valued at approximately A$2.57 billion and was secured by Gamuda Australia in partnership with Laing O’Rourke, under a contract with the New South Wales Government. This value includes RM1.2 billion in variation orders.
Recent developments in Australia have revealed that two tunnel boring machines were halted for six weeks due to proximity concerns involving the Telstra Exchange building on Church Street. While this has raised the prospect of significant additional costs and variation claims—potentially in the hundreds of millions of dollars—tunnelling has since resumed. Both NSW Premier Chris Minns and Sydney Metro have confirmed that the temporary suspension is not expected to impact the overall project budget or delivery timeline.
MIDF Research reaffirmed its positive outlook on Gamuda, stating that any delays associated with the SMW project may ultimately benefit the company due to strategic workarounds and entitlement to variation claims.
Elsewhere, Gamuda is poised to make its entry into the New Zealand market. The group, as part of the Together North consortium, has been shortlisted as one of three contenders for the initial phase of the Northland Corridor project. The scope includes the construction of a 26-kilometre expressway and a twin-bore tunnel, marking a significant milestone in the company’s international growth strategy.
MIDF Research has maintained a “buy” call on Gamuda, with a target price of RM5.42, citing the company’s resilient fundamentals and expanding global footprint.
-The Star
