The contract for the Penang LRT Mutiara Line project that Gamuda’s 60%-owned subsidiary, SRS Consortium Sdn Bhd, secured includes the design, construction and completion of an elevated viaduct, stations and a depot, Gamuda said in a filing yesterday.

Gamuda’s share price reached a record high last week after gaining 107% in 2024, as Malaysia boasts a robust project pipeline amid a data centre boom.

Most analysts are calling the stock a buy.

Gamuda set an order book target of RM40 billion to RM45 billion by end-2025, after being on track to exceed RM30 billion last year.

Following the contract win, Kenanga Investment Bank Bhd analyst Teh Kian Yeong raised Gamuda’s target price and said that SRS is likely to bid for another two ongoing tenders related to the same project.

The LRT Mutiara Line project is expected to cost RM13 billion.

Gamuda’s shares rose as much as 5.9% at the open today, before paring most of its gains.

The company was added to the FTSE Bursa Malaysia KLCI gauge in December.

The firm is already set to be a key beneficiary of Malaysia’s ambitions to become a major data centre powerhouse.

The firm purchased about 389 acres of land in Bandar Springill, within the so-called Malaysia Vision Valley, for its high technology digital infrastructure development.

Gamuda has also been making forays into Taiwan and Australia.

The firm said yesterday that risk factors for the Penang railway project include navigating a tight labour market and managing complex interfaces with other package contractors involved in the project.

The project is scheduled for completion within six years from the notice to proceed.