At 10.32am, the counter had risen four sen to RM3.65 with 1.39 million shares changing hands.

It hit a high of RM3.70, an increase of 9 sen, at 11.05am before settling down to RM3.65 at the midday-break, giving it a market capitalisation of RM9.54 billion.

MIDF Research said Gamuda’s outstanding construction order book remains at a record high of RM14.8 billion, giving it earnings visibility up to FY2026 or FY2027, mainly from overseas jobs.

“The overseas jobs, which is now at RM11.6 billion or 78% of its order book, out of which RM8 billion is from Australia. The group also has RM2.1 billion worth of jobs in Taiwan and RM1.5 billion in Singapore and the remaining RM3.2 billion in Malaysia.

“We are fairly confident that the company is able to hit the target of securing RM25 billion worth of new jobs in two years. Gamuda’s tender win rate is about 40%,” it said in a research note today.

It said Gamuda has set its sights on going huge in Australia, aiming to go alone for projects in the country for the long term.

While MIDF Research had initially projected a slight drop in Gamuda’s earnings due to the disposal of its toll concessions, it seems that this would quickly be replaced by its stronger construction and property earnings, it said.

Meanwhile, CGS-CIMB Securities Sdn Bhd is positive that Gamuda would be focusing on the renewable energy (RE) space as its new growth area (RM2 billion targeted capital expenditure).

It said the recent acquisition of a 30% stake in ERS Energy Sdn Bhd is strategic to pursuing new hydro and solar energy engineering procurement construction and commissioning (EPCC) projects with potential recurring income and targeted equity internal rate of return (IRRs) in the mid-to-higher teens (domestic and overseas).

MIDF Research and CGS-CIMB maintained their ‘buy’ call on Gamuda with their respective target prices of RM4.67 and RM4.69.

Gamuda is one of the largest Malaysian infrastructure companies and was founded by its group MD Lin Yun Ling in 1976.