Record-Breaking FY2023 and Optimistic Trajectory for FY2024
With the culmination of a record-breaking FY2023, Gamuda celebrates yet another milestone year. Our journey thus far has been steeped in stellar talent development, resilience, innovation and strategic insight — these values will continue to drive our progress towards forging our regional excellence.
Projects in the pipeline
Looking ahead, we intend to secure RM22 billion in new wins over the next two years, leveraging robust upcoming construction pipelines locally and abroad. Significant future projects in Malaysia include the Penang Light Rail Transit (LRT), MRT3 and Pan Borneo Highway. Additionally, we have kick-started our highly-anticipated 2,300-acre Penang Silicon Island urban reclamation project, which is set to rejuvenate Penang’s business environment.
Building upon our past victories in Australia, we have garnered our third major project with the Black Hill to Tomago Package of Works for the M1 Motorway Extension to Raymond Terrace. We are also scheduled to deliver a maintenance and stabling depot in Queensland, which will support the state’s rail manufacturing and maintenance works. Meanwhile, we secured our sixth infrastructure win in Taiwan with Kaohsiung Mass Rapid Transit (MRT) Metropolitan Yellow Line Package YC01.
We’re proud to announce that our strategic emphasis on high-value Quick Turnaround Projects (QTPs), alongside ongoing progress on our township projects, has begun to bear fruit. As such, we have set an ambitious target of RM5.6 billion in property sales and RM6 billion in revenue for 2024. These optimistic projections are buoyed by locked-in unbilled sales and expedited QTP sales, promising substantial revenue ahead.
In our efforts to renewable energy, the Ulu Padas Hydroelectric Dam in Sabah is a pivotal project. Addressing the region’s water scarcity issues and energy needs, the project aligns with our broader strategy to expand our sustainable business ventures and bolster our recurring income base. Moreover, Australia’s push for a fully renewable powered grid opens more doors for our capital and expertise, especially in pumped hydro and solar projects.
Reflecting on record-breaking growth
The Group’s strides in the business domain during FY2023 were marked by significant achievements across various fronts, with our overseas revenue surging from RM2 billion to RM4.7 billion.
Remarkably, Gamuda Engineering saw its order book soar to an all-time high of RM25 billion, showing a promising trajectory for future revenue. This was further complemented by the six projects we secured for our engineering arm, with four located overseas and two locally.
Gamuda Land also set unprecedented benchmarks for the Group, hitting sales of RM4.1 billion and unbilled sales of RM6.7 billion.
We fortified our presence in key regions by strategically positioning our property landbank across Malaysia, Vietnam, Singapore, Australia, and the UK. Our remaining landbank, with a Gross Development Value (GDV) of RM62 billion, further sets the stage for future growth and development. Additionally, our acquisition of Downer EDI’s Australian transport projects business has brought in contracts worth RM5.5 billion, strengthening our market presence.
Setting new financial milestones
The Group’s financial narrative this year has been one of strength, as exemplified by our all-time high core post-tax earnings of RM860 million. Maintaining a resilient balance sheet, we boasted a low gearing of 25%, well within our self-imposed limit of 70%. Additionally, owners’ equity stood tall at RM11 billion, reflecting our solid financial foundation.
Our performance metrics indicate this success, with net assets per share at RM4.05 and a Total Return on Equity (ROE) of 17%. Excluding exceptional gains arising from the divestment of highways, the Core Return on Equity stood at 8%. Overall, the Group’s total assets tallied at RM24 billion, with pre-tax earnings surpassing the RM2 billion mark for the first time. We revealed positive indicators.
We are already poised to begin the new year on a positive note. In the first quarter of FY2024 (Q1FY24), the Group witnessed an impressive 35% rise in core earnings to RM195 million, proving our resilience in the construction and property segments.
Safeguarding sustainability
Our commitment to sustainability transcends boundaries. From achieving the inaugural ISO 14064 verification for quantifying and reporting greenhouse gas emissions (GHG) to building our maiden solar power plant spanning 124 acres in Pahang and investing over RM60 million in Aboriginal businesses in Australia, our sustainability initiatives echo our dedication to societal well-being and environmental stewardship. We surpassed the industry average in the Dow Jones Sustainability Indices with a commendable score of 41.
In line with our environmental aspirations, we successfully reduced our GHG emissions by 23%, calculated at 3.6 tonnes CO2e per million revenue from the baseline. The Group also secured an RM550 million sustainability-linked facility and a Special Sustainable Financing Package to encourage end-financing for green projects.
Recognising the need to evaluate our business impact beyond financial metrics, we pioneered using Social Return on Investment (SROI) as a scorecard. Numerous other initiatives further reinforced this dedication to social impact. Emphasising a “local first” approach, we prioritised spending on local suppliers, allocating 94% in Malaysia and 98% in both Australia and Vietnam.
As part of our drive to empower B40 and M40 communities, we invested RM20 million via the Gamuda Scholarship and RM30 million for Technical and Vocational Education and Training (TVET) courses.
Additionally, our commitment to diversity and inclusivity was evidenced by women’s empowerment in the workplace, with a representation of 57% on the board and an overall 38% across the workforce. Other milestones included the deployment of Australia’s first tunnel boring machine (TBM), TBM Betty, and the establishment of Australia’s Tunnelling Infrastructure Academy, which saw 15 female tunnellers in its pioneering intake.
Watch our FY2023 key highlights here:
Celebrating wins, forging ahead
In our path towards a future defined by innovation and excellence, the Group is pleased to have received recognition for our efforts — in 2023, we achieved an outstanding tally of 29 key awards across diverse sectors.
The highlights include:
Asiamoney Asia’s Outstanding Companies Poll 2023
- Overall Most Outstanding Company in Malaysia for the second consecutive year
- Most Outstanding Company in Malaysia for the Construction and Engineering sector for the fifth year in a row
The Edge Billion Ringgit Club Corporate Award 2023
- Highest Returns to Shareholders Over Three Years in the Construction Sector
- Gold under three categories in Malaysia
- Excellence in Women Empowerment Strategy
- Excellence in In-House Talent Pipeline Strategy
- Excellence in Graduate Recruitment and Development
- Bronze under one category in Singapore
- Excellence in Women Empowerment Strategy
In November, we clinched the number one spot at The Edge Malaysia Top Property Developers Awards (TPDA) 2023. We also received two other TPDA awards for Best Quantitative and Qualitative attributes.
The achievements of 2023 have ignited our drive to pursue greater regional excellence in 2024. We are enthusiastic about the opportunities that lie ahead!