Kuala lumpur: Gamuda Bhd's shares experienced an increase of 3.85 per cent this morning after its subsidiary agreed to new terms for a power project in Sabah. As of 11.48 am, the share price rose 17 sen to RM4.59, with a total of 20.62 million shares traded.

According to BERNAMA News Agency, Upper Padas Power Sdn Bhd, which is 45 per cent owned by Gamuda, accepted a revised Letter of Notification from the Energy Commission of Sabah. This notification pertains to the development of the Ulu Padas Hydroelectric Project. The project includes a floating solar component, which is estimated to have an EPCC contract value of RM500 million. Gamuda holds a 75 per cent stake in these construction works, which could potentially add RM375 million to its order book.

MBSB Investment Bank Bhd has maintained its "buy" recommendation for Gamuda, citing an unchanged target price of RM5.60. The bank highlighted Gamuda as its top pick in the construction sector, noting the company's all-time high order book of RM49.3 billion and its geographically diversified portfolio in both construction and property sectors.

The investment bank also pointed out Gamuda's rapid expansion into the utilities space, leveraging its construction expertise and financial strength. This strategic move is aimed at asset ownership to rebuild its recurring income stream.