KUALA LUMPUR, June 24 – Gamuda Bhd’s share price was higher in early trade today after reportedly being shortlisted, via the Together North consortium, for New Zealand’s Northland Corridor Highway (NCH) project.
At 10.30 am, Gamuda’s shares gained four sen to RM4.74 per share with 1.74 million shares traded.
The Together North consortium comprised Plenary Origination Pty Ltd, Webuild, WBCA Pty Ltd, Gamuda Engineering Pty Ltd, and Service Stream Holdings Pty Ltd.
RHB Investment Bank Bhd (RHB IB) in a note today said that if the consortium succeeds as the preferred bidder, the project would be a good addition to Gamuda’s overseas construction exposure which currently covers Australia, Taiwan, and Singapore, making up 50–60 per cent of the group’s total orderbook.
It noted that there were two other consortia, Northway and Go>North, shortlisted for the Warkworth to Te Hana section of the NCH.
“The first stage of the project includes a 26-kilometre (km) four-lane expressway from Warkworth to Te Hana, which connects to the new Pūhoito Warkworth expressway.
“The indicative design for Warkworth to Te Hana includes an 850-metre-long twin-bore tunnel in the Dome Valley and three interchanges located at Warkworth, Wellsford, and Te Hana,” the investment bank said.
RHB IB has maintained its ‘buy’ call for Gamuda with a target price of RM5.64.
