KUALA LUMPUR (Sept 30): Gamuda Bhd (KL:GAMUDA) hit a 10-month high in early trade on Wednesday after its joint venture with SD Guthrie Bhd (KL:SDG) and Gentari Sdn Bhd signed a term sheet with a US-based technology company for a 680MW renewable energy project in Perak.
Gamuda shares rose as much as 20 sen, or 4%, to RM5.18, their highest level since Nov 28, 2025. The counter later retreated to RM5.17, with nearly 36 million shares changing hands, valuing the group at RM31.3 billion.
SD Guthrie also gained as much as six sen, or nearly 1%, to an intraday high of RM6.22, giving it a market capitalisation of RM42.9 billion.
The project comprises a 680MWac hybrid solar photovoltaic plant and a four-hour battery energy storage system, with commercial operations targeted for 2029 under a 21-year renewable energy offtake agreement, according to an exchange filing on Tuesday.
Gamuda estimates the project could generate more than RM10 billion in gross revenue over the 21-year offtake period.
At least 10 of the 22 research houses tracked by Bloomberg have raised their target prices for Gamuda, with the average 12-month target price at RM5.70. Meanwhile, 19 analysts have “buy” calls on the stock, while three have “hold” calls.
The renewable energy project would become Gamuda’s sixth recurring-income asset, while an engineering, procurement, construction and commissioning contract is also expected to be awarded next year, Phillip Capital said.
The research house, which raised its target price to RM5.80, expects Gamuda’s earnings to grow 43% in its financial year ending July 31, 2027 (FY2027) as construction activity ramps up across its sizeable order book. It also pointed to RM7.6 billion in unbilled sales as further support for earnings growth.
BIMB Securities said about 90% of Gamuda’s RM61.2 billion order book has yet to reach peak execution.
The order book is expected to support a 30.5% compound annual growth rate in core earnings from FY2026 to FY2029, with construction activity expected to step up from the first quarter of FY2027, the research house said. It maintained its target price at RM5.91.