The engineering, property and infrastructure company said its overseas earnings tripled to RM292 million compared with FY2021’s RM98 million, as property sales rose to an all-time high of RM4 billion, a 40 per cent jump from last year’s sales of RM2.9 billion. – Bernama photo
KUCHING (Sept 30): Gamuda Bhd (Gamuda) posted a record-breaking net profit of RM806.23 million for financial year 2022 (FY22), up from RM588.32 million in the previous year as stronger construction and property earnings boosted its bottom line.
In a filing with Bursa Malaysia on Thursday, the engineering, property and infrastructure company said its overseas earnings tripled to RM292 million compared with FY2021’s RM98 million, as property sales rose to an all-time high of RM4 billion, a 40 per cent jump from last year’s sales of RM2.9 billion.
Its revenue also surged to RM4.92 billion in FY2022 from RM3.27 billion previously.
MIDF Amanah Investment Bank Bhd (MIDF IB) saw that Gamuda’s outstanding order book remains at a record high of RM14 billion, mainly from overseas jobs, which is now at RM10.7 billion or 76 per cent of its order book.
“The bulk of it comes from Australia, totalling RM8.2 billion, followed by RM3.3 billion in Malaysia, RM1.5 billion in Singapore and RM1 billion in Taiwan, boosting its earnings visibility up to FY26,” it said.
“Replenishment target for FY23 is about RM13 billion and thereafter RM12 billion annually in subsequent years.”
In line with management’s aim to be a regional player, the RM12 billion annual target comprises RM9 million of Australian job wins and RM1 billion each from Malaysia, Taiwan and Singapore. Management is also exploring opportunities in two more countries.
Note that Gamuda has recently been shortlisted for two more projects in Melbourne. One is the northern section of the North East Link, which is set to be the largest road project in the state of Victoria.
“While there has yet to be any guidance on the contract size for the northern section, the total estimated project cost is about A$16 billion,” MIDF IB said.
“It has also formed a JV with John Holland to bid for one of the Suburban Rail Loop (SRL) two tunnelling contracts, the first between Cheltenham and Glen Waverly which will be the longest tunnelling package in the history of Victoria and the second contract from Glen Waverly to Box Hill.
“The first contract will be awarded next year. The SRL is a 90km orbital line that will connect all major suburban lines, with a total project size of A$50 billion. Outcomes for both bids will be known in 2023.”
As for Public Investment Bank Bhd (Public IB), it believes Gamuda will be in a net cash position of RM0.6 billion which will put the group at an advantage in the upcoming MRT3 tender which requires 10 per cent upfront cost.
Other sizeable projects include the Island A Penang South Reclamation valued at around RM4 billion to RM4.5 billion which is expected to kick-start in 1QFY23.
“On the property front, the division targets to grow presales at a cumulative annual growth rate (CAGR) of 30.5 per cent in between FY22-FY25 to RM6 billion through quick turnaround projects (QTPs),” it said.
“QTPs require less capital, have shorter investment horizons yet deliver commendable returns.
“All in all, we are confident that Gamuda would make another breakthrough in the next financial year and remain a construction darling as the group ventures into the international construction space coupled with its strong execution track record.”