New Taipei City:Gamuda Bhd's shares saw an increase on Bursa Malaysia after the company announced its joint venture with Taiwan-based MiTAC Information Technology Corp had secured a significant contract. The contract, valued at RM3.7 billion, involves the construction of the Keelung Mass Rapid Transit (MRT) system and trackwork in Taiwan.

According to BERNAMA News Agency, Gamuda holds a 72.84 percent stake in the joint venture, which translates to approximately RM2.71 billion of the contract. MiTAC holds the remaining 27.16 percent. The contract was awarded by the New Taipei City Government's Department of Rapid Transit Systems.

As of 12.19 pm, Gamuda's shares had risen by two sen to RM4.87, with 4.93 million shares changing hands. Kenanga Investment Bank noted Gamuda's strong position for upcoming tenders, including at the Springhill data centre campus in Port Dickson, Negeri Sembilan. The bank highlighted Gamuda's success in securing all four contracts awarded there since April.

Kenanga IB also mentioned potential future projects for Gamuda, such as the Northern Perak water project domestically and regionally, the New South Wales high-speed rail project, infrastructure projects in Brisbane, and the Northland Corridor Highway in New Zealand. The bank maintained its construction job-win assumptions for Gamuda's financial years 2027 and 2028 at RM30 billion and RM25 billion, respectively, with forecasts of net profits of RM1.39 billion in FY2027 and RM1.78 billion in FY2028.

Kenanga IB reiterated its 'outperform' recommendation for Gamuda, citing the company's robust earnings visibility and its record outstanding order book of RM63.9 billion, as well as its expansion into the renewable energy sector. The target price for Gamuda's shares remains at RM5.90.