Gamuda's Sabah Water Deal Likely to Boost Earnings Visibility — Market Talk

Gamuda's newly secured 3.8 billion ringgit contract for the Ulu Padas Water Supply Scheme could lift earnings, with the project expected to add 228 million ringgit to 285 million ringgit to core net profit over its 3.5-year duration, Maybank IB analyst Yin Shao Yang says in a note. Assuming an 8%-10% pretax margin, the project could contribute 0.04 ringgit to 0.05 ringgit to EPS over its execution period, he says. The award lifts Gamuda's order book to 49.3 billion ringgit, while year-to-date new job wins have hit 18.9 billion ringgit, covering 75% of Maybank's FY2026 forecast. Maybank maintains a buy rating on Gamuda and keeps its target price at 5.30 ringgit. Shares are 0.2% lower at 4.41 ringgit. (yingxian.wong@wsj.com)