RHB Sees 44% Upside for GDB as Sarawak Expansion Strengthens Growth Pipeline
Octopaul AI ·
RHB Investment Bank analyst Adam Bin Mohamed Rahim assigned GDB Holdings a RM0.69 fair value in a “Not Rated” trading-idea report, implying approximately 44% upside. He sees growth opportunities from GDB Holdings’ expansion into Sarawak infrastructure and its established residential, commercial and industrial construction businesses, forecasting earnings to grow at a 15% compound annual rate between 2025 and 2028.
The company had a RM4.2 billion tender book as at September 1, with another RM4.3 billion of tenders planned for submission by year-end. Year-to-date contract wins reached approximately RM795 million, against Adam’s RM1 billion assumption for 2026F. He forecasts new contracts of RM1.3 billion in 2027F and RM1.6 billion in 2028F, supported by industrial projects in Peninsular Malaysia and infrastructure opportunities in Sarawak.
GDB Holdings has secured four Sarawak projects worth RM355.9 million and proposes to acquire 51% stakes in Bina Tegas and BT Borneo Engineering for a combined RM81.6 million. Its planned Sarawak property development, with an estimated RM700 million gross development value, offers another potential earnings source. Adam estimates this could generate RM105 million in cumulative profit over several years under a 15% net-margin assumption, but excludes it from forecasts pending finalisation of the land acquisitions.
As of 9:00 a.m. on October 21, GDB Holdings’s share price rose 3.2% to RM0.48.
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