Gamuda Awarded RM8.32 Billion Penang LRT Contract

Gamuda Bhd has secured a significant contract worth RM8.32 billion for the first segment of the Penang Light Rail Transit (LRT) project, with both MIDF and RHB Investment Banks maintaining a positive outlook on the company. The SRS Consortium, in which Gamuda holds a 60% stake, will undertake the main construction of a 23.7km elevated viaduct featuring 19 stations. Construction is expected to be completed by 2031, contributing to Gamuda's robust order book, projected to reach RM40 billion to RM45 billion by the end of 2025. The Malaysian government has expressed commitment to financially and technically support this project, with additional contracts for subsequent segments of the LRT expected to be tendered soon. Analysts believe Gamuda is well-positioned to secure further contracts due to its strong track record in similar projects. The overall cost for the first segment may be subject to revisions as the project progresses.