GDB Holdings Bhd - Full Steam Ahead
Mon, 16-Feb-2026 08:25 am
by Daryl Hon • Apex Research

Counter

GDB (0198)

Target Price (RM)

0.48

Recommendation

Buy

 

  • GDB has proposed to acquire three parcels of leasehold land in Sarawak for RM32.7m cash, located in the Kuching Central and Muara Tebas land districts.

  • The parcels total c.21,926 sqm are intended for a mixed development with an estimated GDV of RM700m.

  • The Group’s orderbook stands at RM669m, while its tenderbook is estimated at RM1.4bn, with a further RM1.4bn of planned bid submissions by Q1 2026 that could lift the tenderbook to c.RM3bn.

  • Maintain our BUY recommendation with a TP of RM0.48, based on 8.0x FY26F EPS of 6.0 sen.

 

Sarawak Land Acquisition. GDB has proposed to acquire three parcels of leasehold land in Sarawak for RM32.7m cash. The parcels, located in the Kuching Central and Muara Tebas land districts, have a combined land area of c.21,926 sqm and will be acquired from Mighty Metaverse Sdn Bhd, Borneo 1 Stop Business Services Sdn Bhd and Sport Pavillion Sendirian Bhd.

 

First Foray into Property Development. The proposed land acquisition is intended for a mixed development with an estimated GDV of RM700m. The parcels are located within a mature township in Kuching, surrounded by established residential areas with good connectivity and favourable growth prospects. The project represents GDB’s first property development venture in Sarawak and reflects a strategic diversification beyond its core construction operations. The development is expected to be rolled out in multiple phases, comprising serviced apartments, SOHO units, retail components and anchor tenants, supported by full facilities and parking infrastructure.

 

Outlook. GDB’s move into property development came as a surprise given its traditional focus on construction. Nonetheless, we remain confident in the Group’s execution capabilities, supported by its track record in cost control and timely project delivery. The current orderbook stands at RM669m, while its tenderbook is estimated at RM1.4bn, with a further RM1.4bn of planned bid submissions by Q1 2026 that could lift the tenderbook to c.RM3bn. Contributions from property-related construction are likely to materialise only beyond FY26 following project launches.

 

Earnings Revision. No change to our forecasts at this juncture, as the proposed land acquisitions have yet to be finalised.

 

Valuation & Recommendation. We maintain our BUY call with a TP of RM0.48, based on 8.0x FY26F EPS of 6.0 sen, supported by a three-star ESG rating. Despite slower-than-expected job award momentum recently, we remain positive on GDB’s prospects, underpinned by (i) three major projects in its RM669m orderbook entering peak revenue recognition phases, (ii) a sizeable tenderbook expected to reach c.RM3bn by Q1 2026, and (iii)its latest venture into infrastructure and property development.

 

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

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