KUALA LUMPUR: Gamuda Bhd shares rose in early Friday trading following its strong performance in the financial year ended July 31, 2024 (FY2024), with annual revenue rising 63 per cent year-on-year to RM15 billion.

At 10.30 am, the counter rose by 18 sen to RM8.19 with 5.08 million shares traded.

Following its performance, Gamuda announced a one-for-one bonus issue which entails the issuance of 2.97 billion new shares at a date to be determined later.

"We are positive on this development as we think that the bonus issue will enhance the liquidity of its share, thereby making it more appealing to a wider base of shareholders," Public Investment Bank Bhd (PIVB) said in a note.

PIVB keeps its earning forecasts unchanged supported by its robust order book at RM25 billion, improving margin and expanding projects pipeline in both overseas and local markets, boosted by a booming data centre.

The investment bank remains optimistic about the group's exciting prospects and retains an "Outperform" rating on Gamuda, with an unchanged target price (TP) of RM9.20.

Meanwhile, RHB Investment Bank Bhd (RHB IB) continues to favour Gamuda for its steady flow of job wins, which is targeted to hit an outstanding order book of RM30 billion by the end of 2024.

Domestic jobs with higher margins will also contribute positively. Hence, it expects overall construction margins to trend upwards.

"We project Gamuda to clinch another RM20 billion of new jobs in 2025 to achieve an order book level of RM40 billion by the end of that year," RHB IB said, adding that there is another potential RM10 billion worth of jobs between January to July 2025.

It has a "Buy" call with a TP of RM9.79.

Hong Leong Investment Bank Bhd (HLIB) also rated Gamuda with a "Buy" recommendation, with an unchanged TP of RM9.08.

It said the stock is poised to undergo a contract upcycle in the coming months leading up to its potential inclusion in the KLCI.