In a note, the investment bank said Lightsource bp Renewable Energy Investments Ltd awarded the contract for the civil, structural, and electrical infrastructure of the Goulburn River Solar Farm in New South Wales, Australia.
“DTI’s latest solar energy segment job ties in well with the group’s aim to build up to a two-gigawatt portfolio (now at 813 megawatts as per our calculations) of wind and solar projects within five years in Australia,” it noted.
It said work is expected to commence on Jan 1, 2025, and would take 24 months to complete.
RHB maintained the company’s earnings estimates as the latest job win is within its financial year 2025 job replenishment assumption of RM25 billion.
“As such, our sum-of-part-derived target price (TP) of RM11.67 remains unchanged,” the bank said.
On a separate note, Hong Leong Investment Bank (HLIB) also maintained its TP for Gamuda at RM11.03 with a “buy” recommendation.
HLIB remained positive on the stock due to order book upcycle from a high certainty pipeline, differentiated data centre strategy, growing leverage into Australian RE space, and valuation rerating catalyst from upcoming FTSE Bursa Malaysia KLCI (FBM KLCI) entry.
In another research note, MIDF Amanah Investment Bank Bhd said that once operational, the solar farm is expected to generate enough RE to power about 225,000 homes and cut carbon emissions by 910,000 tonnes annually.
The bank noted that with DTI’s new win, Gamuda’s outstanding order book rose to RM31.8 billion.
It said this is well within management’s target of RM30 billion to RM35 billion by the end of 2024 and on track for its RM40 billion to RM45 billion target by the end of 2025, after taking into account an expected burn rate of RM12 billion to RM13 billion annually.
MIDF was also positive on Gamuda and kept its TP of RM10.68.
“(This) is justifiable given its growing prospects in the construction space with an all-time high outstanding order book of RM31.4 billion and its upcoming inclusion into the FBM KLCI starting Dec 23,” it added.
At 11.10am today, Gamuda’s stock prices rose 1 sen to RM9.61, with 2.16 million shares traded.