Property and construction giant Gamuda Berhad is looking to secure an additional RM22bil worth of construction contracts over the next two years to add to its record-high order book of RM25bil in its financial year ended July 31, 2023. “We are optimistic about achieving this target given the strong pipeline of construction projects ahead, locally – including the Penang Light Rail Transit (LRT), MRT3 and Pan Borneo Highway – as well as the healthy infrastructure pipelines presented in Taiwan and Australia,”group managing director Datuk Lin Yun Ling said in a statement in its annual report. It also aimed to achieve property sales of RM5.6bil and a property revenue of RM6bil for the (FY24). Gamuda registered property sales of 4.1bil in FY23
Lin attributed its sustained robust growth to a number of factors, including human capital development, innovation, strategic acumen and resilience. He added that the group’s performance over the last two fiscal years have more than filled the gap left by two earlier key profit drivers, namely earnings from its toll highways and construction of the Mass Rapid Transit (MRT) Putrajaya Line. “The group’s pre-tax earnings crossed the RM2bil mark for the first time following the previous year’s record pre-tax profit of RM1bil. “Excluding the exceptional cash gain of RM1bil on the divestment of highways and completion of MRT Putrajaya Line, core post-tax earnings grew 7% to a record-breaking RM860mil, up from last year’s record of RM806mil on the back of higher overseas construction earnings,” he said.
On the domestic front, Lin said: “The long-awaited Penang South Island (PSI) project, or the 2,300 acre Silicon Island, has finally commenced with works kicking off in September with the official announcement by Chow Kon Yeow, Chief Minister of Penang. “Gamuda’s strong credentials in delivering railway projects make our subsidiary, SRS Consortium Sdn Bhd, an ideal choice for the Project Delivery Partner role as the Transport Ministry is finalising the details of Penang’s LRT project.” On a similar note, he said the group is keeping its optimistic stance in a positive outcome with its MRT3 tender.
On Gamuda’s property development goals, Lin explained that the group’s property sales targets were based on locked-in unbilled sales together with faster-than-expected sales and construction of its quick turnaround projects (QTPs). He estimated that 50% of the targeted revenue to be coming from in-hand sales orders in Vietnam, the United Kingdom, Australia and Singapore that have yet to be recognised in FY23. “We expect significant revenue to be recognised in FY2024, subject to the completion of the QTPs,” he added.