Gamuda on track to achieve RM25b order book for FY2022-23, says MD
Kuala Lumpur (Nov 9): Gamuda Bhd has clinched RM15 billion worth of construction orders, putting it on track to achieve its target of a cumulative RM25 billion order book for the two financial years ending July 31, 2023 (FY2022-23).
The orders were secured from its key markets for construction, namely Australia, Taiwan, Singapore and Malaysia, group managing director Datuk Lin Yun Ling said.
“We remain cautiously optimistic about our prospects in the coming years, but we are reasonably well-placed to ride out the storms ahead, given our strategic plays in various regional markets, our strong financial position, and our earnings visibility from our outstanding order book and unbilled sales,” he said in the company’s latest annual report.
He said Gamuda had widened its horizons, as it continued to advance its regionalisation strategy and had broken multiple earnings records across the group’s business divisions.
“Most significantly, we ended FY2022 with a group pre-tax profit that crossed the RM1 billion mark for the first time, and a historically high construction order book of over RM15 billion, following a string of contract wins over the year,” he said.
Gamuda recorded a group pre-tax profit of RM1.02 billion for FY2022, while full-year net profit rose 37% to a record RM806.23 million.
Commenting on property development, Lin said Gamuda had identified quick turnaround projects, and plans to invest RM5 billion in the projects over the next few years as a key enabler of growth, with a strategic focus on expansion in various nations that it is familiar with and well-versed in.
“By operating in a few strategic markets, we are minimising our business risk by lessening the impact if individual markets experience a slowdown in their property cycle,” he added.
On the highway concession division, Lin explained that Gamuda had ironed out the details of the divestment of four highways to Amanat Lebuhraya Rakyat Bhd.
“In October, the sale was successfully completed, and although Gamuda will lose steady recurring income from the sale of the concessions, we had started preparing for this eventuality some years ago.
“As such, we do not expect an earnings void following the divestment, given anticipated earnings growth on the back of substantial growth in revenue from our other two core businesses,” he said.
In the long term, he said, Gamuda plans to invest in renewable energy and other green verticals with the potential to contribute a baseline of recurring income to the group, while enabling it to fulfil its sustainability commitments.