Affin Hwang Capital Research: Although the government cancelled, delayed and renegotiated multiple big infrastructure projects, the RM8.9 billlion Gemas-JB Electrified Double Tracking (EDT), of which YTL is one of the two main sub-contractors, remains intact.
The new government’s shift to prioritise inclusiveness in development will see higher allocation of development expenditure to less developed states and expanding public services and utilities.
The outlook for the construction sector remains challenging as the federal government is reviewing ongoing infrastructure projects to reduce costs by 20%-33%.
KLCC Stapled Group’s parent company, KLCC (Holdings) Sdn Bhd (KLCCH), is developing three new integrated commercial projects around the KLCC Park.
The new government has indicated that it will review infrastructure projects to be implemented…
Its high remaining order book of RM6.14 billion, equivalent to three times its 2017 revenue, provides good earnings visibility.
We believe the construction stocks will rally post the 14th general election (GE14) assuming there is no change in government
The MRT3 contract is expected to be awarded by April 2018.
Affin Hwang upgrades Gabungan AQRS to "buy" with a higher target price.
Downside risk to earnings would likely be the strengthening of the ringgit.
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