KUALA LUMPUR (April 5): Gamuda Bhd rose as much as 16 sen or 4.47% to RM3.74 this morning after the government gave the green light for it to proceed with the Mass Rapid Transit Line 3 (MRT 3).

At 10 am, Gamuda had pared some gains at RM3.71, still up 13 sen or 3.63%, with 1.42 million shares changing hands.

Analysts said MMC-Gamuda is a prime beneficiary of the MRT 3 project given its expertise and track record in the previous lines.

“This project will put MMC-Gamuda in the limelight as the main proxy for the MRT project, i.e. as the project delivery partner (PDP) for the MRT 1 and turnkey contractor for MRT 2,” PublicInvest Research analyst Nurzulaikha Azali said.

Maybank Investment Bank Research analyst Wong Chew Hann also expects MMC-Gamuda to be the lead contender for the tunnel work.

“Based on their experience in both the MRT 1 and 2, MMC-Gamuda [in partnership] are strong contenders to lead under the PDP or turnkey model. They are also the lead contender for the tunnel works worth at least RM10 billion, we estimate,” she added.

CGS-CIMB Research analyst Sharizan Rosely said he believes the odds are still favourable for Gamuda to secure both the turnkey contract and underground portion of the MRT 3.

“This news revives Gamuda’s order book replenishment outlook for 2021 as the likely biggest beneficiary of the MRT 3,” he said.