GDB Holdings Bhd - Record ParkCity Win Lifts Order Book to RM2.05bn
Tue, 27-Oct-2026 06:46 am
by Research Team • Apex Research

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GDB (0198)

Target Price (RM)

0.67

Recommendation

Buy

  • GDB has secured a RM1,017.0m main building works contract from Perdana ParkCity for ParkCity Residences in Desa ParkCity, the largest residential award in the Group's history, commencing on 4 November 2026.  

  • The award lifts the Group's order book to c.RM2.05bn, its highest in five years, extending earnings visibility to FY2031. 

  • The Group's tender book stands at c.RM3.3bn following the ParkCity award, comprising prospective projects spanning industrial, data centre, commercial, mixed-use, infrastructure and residential sectors.

  • Maintain BUY with an increased TP of RM0.67 (from RM0.60), based on 9.5x P/E applied to a roll-forward FY28F EPS of 7.0 sen.

 

Secured RM1.02bn ParkCity Residences contract. GDB, via its wholly-owned subsidiary Grand Dynamic Builders Sdn Bhd, has accepted a Letter of Award dated 21 October 2026 from Perdana ParkCity Sdn Bhd for the main building works of ParkCity Residences in Desa ParkCity, Kuala Lumpur, for a contract sum of RM1,017.0m. The development comprises two residential blocks of 49 to 63 storeys with 433 apartments, erected on a 7-storey podium housing residential amenities and car parks, alongside a 2-storey basement car park. The contract commences on 4 November 2026 for a duration of 58 months, with completion scheduled for 18 August 2031. The Group intends to fund the contract through internally generated funds and/or bank borrowings. 

Our View. We view this contract award positively. At RM1,017.0m, the award is the largest residential contract in the Group's history and roughly doubles its order book to c.RM2.05bn. It also extends a relationship with Perdana ParkCity dating back to 2013, during which the Group delivered One Central Park, Westside III and Park Regent at Desa ParkCity. Applying a c.8% PAT margin, the contract could contribute roughly RM81.4m in cumulative PAT, or c.RM17.0m a year over its c.58-month tenure, equivalent to c.21.8% of our FY27F core net profit. Execution risk appears manageable given the Group's quality track record, with Park Regent achieving a BuildQAS score of 85.5% and Metrohub 4 a QLASSIC score of 90%. That said, running two large high-rise jobs concurrently, namely Wolo and ParkCity, will test project management capacity and working capital, while the long tenure exposes margins to building material and labour cost movements.  

Outlook. GDB's order book now stands at c.RM2.05bn, or c.2.7x FY25 revenue, providing earnings visibility through FY2031. YTD contract wins total a record RM1.81bn, comprising ParkCity Residences (RM1,017.0m), the Wolo Hotel & Residences Mont Kiara KL (RM439.4m), Sarawak roadworks (RM121.4m), the PRAB Phase 3 flood forecasting sub-contract (RM119.0m) and the water treatment plant in Song (RM115.5m). The tender book stands at c.RM3.3bn following the ParkCity award, spanning industrial, data centre, commercial, mixed-use, infrastructure and residential sectors. Demand for high-end residential towers in established Klang Valley enclaves such as Desa ParkCity, alongside industrial, data centre and Sarawak infrastructure work, continues to underpin the Group's pipeline across Peninsular and East Malaysia.

Earnings Revision. Following the new contract award, GDB’s FY26 order book replenishment has surpassed our assumption of RM1.3bn. We have revised our FY26 order book replenishment assumption upward to RM2.0bn, while also maintaining our FY27 and FY28 assumptions RM900m each. Consequently, we have upgraded our earnings forecasts for FY26F/FY27F/FY28F by 4.9%/21.1%/23.0%, respectively, to RM75.1m/RM78.1m/RM72.2m.

Valuation & Recommendation. We maintain our BUY recommendation on GDB with an increased TP of RM0.67 (from RM0.60), based on 9.5x P/E applied to a roll-forward FY28F EPS of 7.0 sen, alongside a three-star ESG rating. We continue to like GDB for (i) its sizeable tenderbook of c.RM3.3bn, (ii) its expansion into Sarawak infrastructure works, and (iii) its diversification into property development.

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

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