GDB Holdings Bhd - Another Record High Core Profit in 3QFY25
Fri, 21-Nov-2025 07:43 am
by Research Team • Apex Research

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GDB (0198)

Target Price (RM)

0.530

Recommendation

Buy

  • GDB’s 3QFY25 CNP came in at RM28.2m (+29% QoQ, +76% YoY) after adjusting for RM13.5m of impairment loss on trade receivables and other EIs, bringing 9MFY25 CNP to RM69.7m (+215% YoY). The results came in with expectations, accounting for 80% of our full-year estimates.

  • 3QFY25 CNP improved QoQ and YoY due to increase in revenue driven by stronger progress on three major projects.

  • GDB’s orderbook remains healthy at c.RM800m, providing earnings visibility until FY26.

  • The Group’s tenderbook is estimated at c.RM5bn, with RM1.4bn of additional bids planned for 1Q 2026.

  • Maintain BUY recommendation with an unchanged TP of RM0.53, based on assigned 8.0x P/E multiple to its FY26F EPS of 6.6 sen, along with a three-star ESG rating.

 

Within Expectations. After adjusting for a RM13.5m impairment loss on trade receivables and a RM0.03m gain on disposal of PPE, GDB’s 3QFY25 CNP came in at RM28.2m (+30% QoQ, +76% YoY), bringing 9MFY25 CNP to RM69.7m (+215% YoY). The results came in within expectations, accounting for 80% of our full-year estimates. 

 

YoY. 3QFY25 CNP surged 76.1%, supported by a 204.5% jump in revenue on the back of stronger work progress and contribution from its key projects, namely the KL International Hospital in Bukit Jalil, the Logistic Hub Plot B project in Shah Alam and the Metrohub 4 Logistic Hub project in Klang.

 

QoQ. CNP surged 29.9% QoQ, in line with the 22.7% increase in revenue, marking its strongest quarterly earnings for the second consecutive quarter since its listing on Bursa Malaysia in 2018. Completion stands at 59% for the KL International Hospital in Bukit Jalil, 61% for the Logistic Hub Plot B project in Shah Alam and 43% for the Metrohub 4 Logistic Hub project in Klang.

 

Outlook. GDB’s orderbook remains healthy at c.RM800m (2.9x FY24 revenue), with its three ongoing projects providing visibility into FY26. With one month remaining in 2025, the Group is preparing another RM1.4bn in bid submissions by 1Q 2026 across warehouse, hospital, residential, commercial and mixed-use segments. The tenderbook is estimated at c.RM5bn, and we keep our projected annual new wins at a conservative c.RM700m for FY26F. Infrastructure work also forms part of its longer-term strategy—while timelines remain unclear, such opportunities could provide an additional replenishment driver when they materialise.

 

Earnings Revision. Forecasts maintained, as results were within expectations.

 

Valuation and Recommendation. We maintain our BUY recommendation on GDB, with an unchanged TP of RM0.53 based on assigned 8.0x P/E multiple to its FY26F EPS of 6.6 sen, along with a three-star ESG rating. We remain positive on GDB’s outlook, driven by (i) three major projects in its RM800m orderbook entering peak revenue recognition phases, (ii) potential new contract wins from a sizable tenderbook, estimated at c.RM5bn; and (iii) long-term expansion plans into infrastructure construction services.

 

Risks. Rising material prices, failure to secure new contracts and risk of Liquidated Ascertained Damages (LAD).

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