GDB Holdings Bhd - A winning streak
Thu, 19-Mar-2026 08:16 am
by Daryl Hon • Apex Research

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GDB (0198)

Target Price (RM)

0.48

Recommendation

Buy

  • GDB secured a RM115.5m contract for a proposed new water treatment plant in Song District, Sarawak to undertake the construction, supply, delivery, installation, testing and commissioning of the new facility.

  • Post job wins, GDB’s orderbook now stands at RM785.7m, providing the Group with earnings visibility through FY29. 

  • The Group has an estimated tenderbook of RM3.1bn, with a further RM1.3bn of planned bid submissions by Q2 2026, which could lift the tenderbook to c.RM4bn.

  • No change to our earnings forecasts as the latest job win is within our internal job replenishment estimate of RM550m.

  • Maintain our BUY recommendation with an unchanged TP of RM0.48, based on 8.0x FY26F EPS of 6.0 sen, supported by a three-star ESG rating.

Another job secured in East Malaysia. GDB secured a RM115.5m contract for a proposed new water treatment plant in Song District, Sarawak. Through its wholly-owned subsidiary GDB Infra Sdn Bhd, the Group was appointed by Pembinaan JBS Sdn Bhd as a sub-contractor to undertake the construction, supply, delivery, installation, testing and commissioning of the new facility.

 

Further details. The project is scheduled to commence in March, with a construction period of 36 months and targeted completion by Q1 2029. Applying a conservative c.5-6% PAT margin, the RM115.5m contract is expected to generate approximately RM5.5m–6.5m in PAT over FY26–FY29 (c.RM1.4m–1.6m annually). This represents approximately c.2-3% of our FY26F Group PAT forecast of RM61.9m, indicating a modest earnings contribution.

 

Outlook. GDB’s third contract win this year accounts for 21% of our FY26 job replenishment assumption of RM550m. Following the award, the Group’s orderbook has increased to RM785.7m, providing earnings visibility through FY29. Meanwhile, its tenderbook stands at approximately RM3.1bn, with a further RM1.3bn worth of bids being prepared for submission by 2Q26 across warehouse, residential, commercial and mixed-use segments. Looking ahead, we expect a pickup in non-infrastructure project wins as three ongoing projects, namely the Metrohub 4 logistics warehouse in Klang, Logistics Hub Plot B in Shah Alam and the International Tertiary Hospital in KL, are nearing completion by FY26, which should free up resources for new job intake.

 

Earnings Revision. No change to our earnings forecasts as the latest job win is within our internal job replenishment estimate of RM550m.

 

Valuation & Recommendation. We maintain our BUY recommendation with an unchanged 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 RM785.7m 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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