PETALING JAYA: CIMB Research believes that Gamuda Bhd

is poised to bag more large-scale data centre (DC) building jobs following its RM2.1bil contract win to build two hyperscale DCs at Eco Business Park V (EBP V) in Puncak Alam, Selangor.

“Having assembled up to nine DC teams, we believe Gamuda is well-positioned to take on more large-scale DC building jobs,” it said.

The latest DC contract was awarded by Eco World Development Group Bhd

’s subsidiary Quantum Alpha Sdn Bhd.

“We estimate the project to fetch average pre-tax margins of 8% over a two-year period (from third quarter of financial year 2025 (3Q25) until 3Q27),” the research house said.

The research house shared that Gamuda is backed by its next-generation Industrialised Building System (IBS) facilities that can deliver large-scale IBS campuses on an accelerated timeline, and the ability to provide one-stop solutions for hyperscalers looking to set up shop in Malaysia.

It pointed out that the latest contract win would lift Gamuda’s combined value of DC-related job wins to some RM5.8bil, boosting its outstanding DC-related order book of RM2.7bil by 1.8 times to about RM4.8bil.

CIMB Research said Gamuda had earlier targeted to crystallise at least RM7bil worth of orders from six or seven DC-related bids by end-October.

“In addition to the shell and core works, Gamuda is awaiting tender results for the mechanical and electrical component of the EBP V DC plus another DC at the same industrial park and the Elmina Business Park Phase 2 DC,” it added.

Outside the Klang Valley, Gamuda disposed of 389 acres of land in Springhill Industrial Park to Pearl Computing Malaysia for RM445mil in May and the company was contracted to undertake enabling works (earthworks and external infrastructure) worth RM1bil on the same parcel of land.

“Given its integral role in providing the land and relevant infrastructure, we believe that Gamuda is well-placed to bid for several hyperscale DC facilities being planned in Springhill Industrial Park, with the maiden tenders likely to take shape by first half of financial year 2026,” it added.

Meanwhile, Phillip Capital Research expects stronger sequential 4Q25 earnings with the 2026 project pipeline in sight.

“We expect Gamuda’s 4Q25 core earnings to come in stronger quarter-on-quarter in the range of RM250mil to RM290mil, driven by improved progress recognition from its DC and Australia infrastructure projects.

“We remain positive on the group’s long-term earnings visibility, supported by its strong RM40bil to RM45bil order book target,” it explained.

The research house pointed out that beyond 2025, replenishment prospects are well supported by several shortlisted projects and early contractor involvement works in Australia.

It has reiterated its “buy” call with a higher target price of RM6.64, to better capture earnings visibility from its sizeable order book, while also incorporating the valuation of new water concession assets.

“We continue to like Gamuda for its strong execution track record in infrastructure projects and increasing exposure to DC projects.

“Key risks to our call include delays in project execution, slower-than-expected contract wins, weaker property sales, and cost overruns,” the research house said.