Gamuda shares hit new record high as CIMB flags potential data centre jobs

KUALA LUMPUR (April 4): Shares in Gamuda surged to a new all-time high on Thursday, as CIMB Securities flagged the company’s potential to secure another two data centre projects, including the AIMS Cyberjaya Block 3.

Gamuda edged up as much as 1.4% or seven sen to RM5.33. The stock was last at RM5.32 at the midday trading break, after more than 2.1 million shares changed hands. The Bursa Malaysia Construction Index, which tracks 47 stocks in the sector, was up 0.3%, while the country’s benchmark index FBM KLCI was 0.9% higher.

“As the main contractor for Cyberjaya Block 2, we tip Gamuda to be the leading candidate to bag a similar contract for Cyberjaya Block 3,” according to CIMB Securities analyst who attended the company’s latest briefing. Gamuda delivered the eight-storey Cyberjaya Block 2 in just eight months, the research house noted.

AIMS Group, the data centre arm of TIME dotCom Bhd, announced on Tuesday that it would start the construction of Cyberjaya Block 3, following the completion of Cyberjaya Block 2 in collaboration with Gamuda.

The upcoming Block 3 is expected to be completed by the second quarter of 2025, AIMS said.

Gamuda indicated to analysts that the company is “quite confident” of clinching two new data centre mandates, CIMB Securities said. The contract value of Block 3 was not disclosed, though the research house estimated it at over RM200 million.

CIMB Securities has a ‘buy’ call on Gamuda along with 18 other analysts, and only one house — Macquarie — has a ‘sell’ rating. The consensus 12-month target price is RM5.98, according to Bloomberg.

Shares in Gamuda have risen 15.9% year-to-date, amid a boom in construction stocks, as investors bet on infrastructure roll-outs and rising demand for data centres.

CIMB Securities also maintained its ‘overweight’ stance on the Malaysian construction sector.

Gamuda is poised to re-commission its second industrialised building system facility in Banting, in anticipation of rising demand for pre-cast applications from the data centre industry over the next five to six years, CIMB Securities said.

Still, Gamuda prefers to be “more selective” with its data centre bids to protect margins, CIMB Securities said. “To this end, its core focus is on fast-built DC projects that emphasise speed and quality.”

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