HLIB Research: Gamuda Order Book Could Reach RM35b

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Post on Oct 27, 2024

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HLIB Research: Gamuda's Order Book Could Reach RM35 Billion, But Is It All Good News?

Gamuda Bhd (Gamuda) is a construction and property giant in Malaysia, and HLIB Research recently put out a report saying their order book could reach RM35 billion. That sounds amazing, right? Like a massive influx of projects and tons of money coming in. But hold your horses, let's dig a little deeper.

The Hype: The report highlights Gamuda's strong track record in infrastructure development, particularly in the construction of highways and mass rapid transit (MRT) lines. This is a big deal, especially considering the government's ongoing focus on infrastructure development in Malaysia.

The Reality Check: While a huge order book might seem like a guaranteed win, there are some things to consider. For example, the majority of Gamuda's projects are government-linked. This means they're highly reliant on government spending and policy decisions. If the government's budget changes or priorities shift, it could impact Gamuda's earnings.

A Deeper Dive: HLIB Research also mentions Gamuda's exposure to overseas markets, specifically in Australia and Singapore. This is a positive sign as it helps diversify their portfolio and reduce dependence on the Malaysian market. But we still gotta remember that overseas projects come with their own set of risks and challenges.

The Bottom Line: HLIB Research is bullish on Gamuda's future, citing the strong order book and potential for growth. But it's important to remember that any investment involves risks. Don't just go chasing a big order book; make sure to do your own research and consider all the factors before making any investment decisions.

Key Takeaways:

• Gamuda's order book could hit RM35 billion, driven by strong government infrastructure projects.
• The report highlights the potential for growth but also emphasizes risks associated with government-linked projects and overseas expansion.
• Investors should conduct their own research and consider the potential downsides before investing.

In Conclusion: Gamuda's massive order book is exciting news, but it's important to understand the bigger picture. Like any investment, you gotta look at the good, the bad, and everything in between before jumping in.