GDB Holdings Bhd - Above Expectations
Thu, 26-Feb-2026 08:43 am
by Daryl Hon • Apex Research

Counter

GDB (0198)

Target Price (RM)

0.48

Recommendation

Buy

  • GDB’s 4QFY25 CNP came in at RM36.5m (+29.2% QoQ, +282.5% YoY) after adjusting for RM38.5m of impairment loss on trade receivables and other EIs, bringing 12MFY25 CNP to RM106.2m (+298% YoY). The results exceed expectations, accounting for 127% of our full-year estimates. 

  • GDB’s orderbook now stands at c.RM550m, providing earnings visibility until FY26.

  • The Group’s tenderbook is estimated at c.RM3.1bn, with RM1.3bn of additional bids planned for 2Q 2026.

  • Maintain BUY recommendation with an unchanged TP of RM0.48, based on assigned 8.0x P/E multiple to its FY26F EPS of 6.0 sen, along with a three-star ESG rating.

 

Results above expectations. After adjusting for a RM38.5m impairment loss on trade receivables and other EIs, GDB’s 4QFY25 CNP came in at RM36.5m (+29.2% QoQ, +282.5% YoY), bringing 12MFY25 CNP to RM106.2m (+298% YoY). The results exceed expectations, accounting for 127% of our full-year estimates. 

 

YoY. 4QFY25 CNP surged 282.5%, in line with the 111.4% increase in revenue driven by higher work progress and contributions 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 rose 29.2% QoQ despite a 10.2% decline in revenue, which was mainly due to timing differences in construction progress recognition. Importantly, the three ongoing projects remain on track for completion in FY26.

 

Outlook. GDB’s orderbook now stands at c.RM550m (2.1x FY24 revenue), with its three ongoing projects providing earnings visibility into FY26. The Group is preparing c.RM1.3bn worth of bids for submission by 2Q26 across warehouse, residential, commercial and mixed-use segments. Its latest tender book is estimated at c.RM3.1bn, and we maintain a conservative assumption of c.RM550m in new wins for FY26F. We also expect infrastructure project awards in East Malaysia to gain traction over the coming quarters.

 

Earnings Revision. We maintain our forecasts, adopting a more conservative stance following the lack of contract wins in FY25, while introducing our FY27F earnings estimates.

 

Valuation and 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. We remain positive on GDB’s prospects, underpinned by (i) three major projects in its RM550m orderbook entering peak revenue recognition phases, (ii) a sizeable tenderbook expected to reach c.RM4bn by Q2 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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