KUALA LUMPUR (Jan 30): Construction services outfit GDB Holdings Bhd (KL:GDB) has secured two road construction contracts in Sarawak worth a combined RM121.4 million. The projects, awarded by Bina Muhibbah Permajaya Construction Sdn Bhd, mark GDB's strategic entry into the East Malaysian market.

The latest contract wins collectively bolster GDB’s outstanding order book to RM669 million, providing the group with earnings visibility through late 2028.

The first contract, valued at RM54.4 million, involves road development works across the Simunjan and Samarahan districts. The contract period spans 32 months, commencing on Jan 29, 2026, and is expected to end by Sept 28, 2028.

The second contract, worth RM67 million, covers the construction of a new single carriageway road, including earthworks, drainage and ground improvement works across the Kuching and Samarahan divisions. The contract will run for 17.5 months from Jan 28, 2026, with completion slated for July 12, 2027.

GDB said the contracts are expected to contribute positively to the group’s earnings over their respective durations while having no impact on its share capital or substantial shareholders’ shareholdings.

“Securing these contracts marks our first successful diversification into the East Malaysian market, a key milestone in GDB’s strategic expansion beyond Peninsular Malaysia. Moving forward, we intend to leverage the group’s proven track record of operational excellence and timely delivery to pursue more opportunities in the region,” said executive director and acting group managing director Andy Lai Wee Young in a statement on Friday.

At the midday break on Friday, GDB’s share price was down half a sen, or 1.27%, at 39 sen, bringing the group a market capitalisation of RM402 million. The stock has risen by 14.7% over the past year. AskEdge data showed that the group is currently trading at a price-earnings ratio of 6.2 times, significantly lower than most sector peers.