Orderbook lifted to MYR12.5b
Gamuda’s 2nd Australia project win – main package for the Coffs Harbour
Bypass – has lifted its outstanding orderbook to MYR12.5b, based on its
50% stake in the JV which won the project (worth AUD1.35b) and its
MYR10.4b outstanding orderbook as of early-Mar 2022. This latest win
brings Gamuda closer to its MYR20b E&C orderbook target by mid-2023.
We have a BUY on the stock with an unchanged MYR4.28 RNAV-TP.
In 50:50 JV with Ferrovial Construction Australia
Ferrovial Construction Australia and Gamuda Australia Joint Venture
(FGJV) has won a AUD1.35b (MYR4.12b) design-and-construct contract to
deliver the main package of works for the Coffs Harbour Bypass project
by the New South Wales (NSW) Government. The project is fully
government-funded comprising a new and upgraded 4-lane dual-way
highway, bypass and tunnels. The project is expected to be opened to
traffic from late-2026 and fully completed in late-2027. Coffs Harbour is
located in the northern coast of NSW, 550km from Sydney.
A highly experienced JV partner
Ferrovial is a leader in design-and-build construction projects in Australia
and New Zealand. It won the Sydney Metro West 1st tunnelling contract –
Central Tunnelling Package – worth AUD1.96b in Jul 2021, while Gamuda
clinched the Western Tunnel Package worth AUD2.16b in Mar 2022.
Ferrovial has been operating in Australia since 2002. Its construction unit
has a presence in Australia since 2011, having participated in upgrading
road accesses to the Northern Beaches Hospital in Sydney, construction
of part of the Pacific Highway, and the Harwood Bridge.
Earnings contribution into FY28
This latest win has lifted Gamuda’s 2022-YTD contract wins to MYR9.4b,
incorporating its 50% share in the AUD1.35b contract value. Assuming 8%
pre-tax margin, we estimate a net profit contribution of MYR115m into
FY28 (5 years of construction till late-2027) or 4.6sen/Gamuda shr. We
maintain our forecasts pending further details on this new project.