· GDB has secured a RM439.4m building works contract for the 60-storey Wolo Hotel & Residences Mont Kiara KL, commencing on August 2026.
· The award lifts GDB's total order book beyond RM1.0bn, extending earnings visibility to FY2030.
· The Group’s tender book now stands at c.RM10bn, comprising prospective projects spanning industrial, data centre, commercial, mixed-use, infrastructure, and residential sectors.
· Maintain BUY with an increased TP of RM0.60 (from RM0.57), based on a P/E multiple of 9.5x applied to a higher FY27F EPS of 6.3 sen, alongside a three-star ESG rating.
Secured RM439.4m premium Mont Kiara development. GDB, via its wholly-owned subsidiary Grand Dynamic Builders Sdn Bhd, has been appointed main contractor for the Wolo Hotel & Residences Mont Kiara KL, a 60-storey mixed-use tower awarded by Magma Kiara Sdn Bhd. The project comprises 378 serviced apartments, 98 serviced suites, a 63-room hotel, retail space and ancillary facilities. Construction is scheduled to commence in August 2026, with completion targeted for December 2030.
Our view. We view this contract award positively. At RM439.4m, the contract is in addition to and enlarges GDB's entire disclosed order book of RM620.0m as at 31 March 2026, marking a step-change rather than a routine replenishment. Applying an estimated c.8% PAT margin, the project could contribute roughly RM35.2m in cumulative PAT spread over FY2026F to FY2030F. Execution risk appears manageable, given GDB's track record of on-time or early delivery - Metrohub 4, for instance, was handed over 45 days ahead of schedule in July 2026, and its continued addition of landmark KL developments to its completed portfolio.
Outlook. GDB’s orderbook now stands at c.RM1.0bn, with its ongoing projects expected to provide earnings visibility through FY30. Meanwhile, its tender book remains healthy at c.RM10.0bn, comprising prospective projects spanning industrial, data centre, commercial, mixed-use, infrastructure, and residential sectors. Malaysia's construction sector continues to benefit from several structural tailwinds: sustained government infrastructure spending, ongoing high-rise and mixed-use development in the Klang Valley, and rising demand for industrial and logistics space tied to e-commerce growth. The data centre segment has also emerged as a fast-growing vertical, as regional cloud and AI infrastructure investment accelerates, giving contractors with the right track record and certifications a broader set of growth avenues beyond traditional residential building. Within this backdrop, GDB's expanding tender book and diversification into infrastructure, including the prospect of East Malaysian projects, position it to participate more meaningfully in this broader opportunity set, rather than remaining reliant on the high-rise residential cycle alone.
Earnings Revision. As a result of this contract win, our FY26F, FY27F and FY28F earnings forecasts have been raised by 2.0%, 5.9% and 7.1% respectively. Meanwhile, following the new contract award, GDB's FY26 order book replenishment has exceeded our initial RM900m assumption. We have raised our FY26 order book replenishment assumption to RM1.3bn, while keeping our FY27 and FY28 assumptions unchanged at RM900m each.
Valuation and Recommendation. We maintain our BUY recommendation with a higher TP of RM0.60 (from RM0.57), based on a P/E multiple of 9.5x applied to a higher FY27F EPS of 6.3 sen, alongside a three-star ESG rating.
Risks. Rising material prices, failure to secure new contracts and risk of Liquidated Ascertained Damages (LAD).
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| Currency | Buy Rates (RM) | Sell Rates (RM) |
|---|---|---|
| USD | 4.070803 | 4.102421 |
| EUR | 4.658688 | 4.662372 |
| CNY | 0.603014 | 0.603482 |
| HKD | 0.519444 | 0.522975 |
| SGD | 3.153824 | 3.175253 |