Gamuda is a long-established infrastructure company, co-founded by Lin Yunlun and Mr. Guan Youyuan. Since its establishment in 1976, it has been a significant pillar of Malaysia's architecture engineering, including the North-South Highway, MRT/LRT rapid transit system, Smart tunnel, LDP highway, and the upcoming Penang Island reclamation project (PSI).
Its business development covers 9 countries, including Malaysia, Singapore, Vietnam, United Kingdom, Australia, Taiwan, India, Panama, and Qatar.
Since the change of government in 2018, several large-scale projects have been forced to be postponed or even canceled, such as the East Coast Rail Link, Bandar Malaysia, MRT3, and the Kuala Lumpur-Singapore high-speed rail, evaporating billions of dollars in development value. However, a strong foundation has enabled Gamuda to quickly emerge from the downturn, actively bidding for international infrastructure orders, expanding property projects, and reducing reliance on government projects.
In the past few years, it has won many contracts, and as of the latest record, it holds order value of up to 25.1 billion Malaysian Ringgit, which is enough to contribute to at least 3 years of revenue.
The very healthy asset capability and return on investment for shareholders have made local renowned institutions such as PNB, EPF, KWP, and Lembaga Tabung Haji become significant major shareholders in recent years.
Recently, successfully sold 4 highways and allocated 1.47 billion for the acquisition of land in Ho Chi Minh City, in order to create a comprehensive development project, along with the newly obtained infrastructure project in Australia.
The future prospects in the coming years are very optimistic, which is also the target price...

According to the latest market closing situation, the real estate sector has broken through a new high since April 2022, and has rebounded 23% from the bottom of last year/ trying to break out of the slump cycle since 2018. In particular, after Malaysia ushered in several coups d'état, capital has flowed back to this sector. It seems certain that the worst situation is over
In terms of support, most well-known real estate groups have delivered results in line with expectations in the past few quarters, such as Mahsing, Matrix, Spsetia, Ecoworld, and SimeProp. At the same time, the recovery in net profit also raised the dividend rate for the whole year
In terms of prospects, many large-scale projects have been put on hold after 2018, such as the Malaysia City and Longxin high-speed rail. These projects involve tens of billions of dollars in value, and the impact of the shelving on surrounding real estate development is definitely not small
However, according to the latest analysis report, the Solidarity Government intends to restart pending projects. For example, the Longxin High Speed Rail has reached a preliminary agreement and is currently discussing plans for a second home. Coupled with the Bank of China's help in stopping interest rate hikes, it's all good news that favors real estate development
Since the pandemic, real estate has been one of the areas that has recovered relatively rapidly. The average valuation for the past 5 years has remained below 10. Coupled with the lack of themes in the market and the help of many favorable conditions, the real estate sector has become a safe haven for investors, following the trend to push the sector out of the slump. So whether the rally can continue, I think the 2024 budget will be the biggest key
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