Pls read below. Muhibah is one of top pick of CIMB IB Reseach.
KUALA LUMPUR (May 18): CIMB IB Research has maintained an “Overweight” call on Malaysia’s construction sector, on the back of the Mass Rapid Transit Line 2 (MRT 2) and Light Rail Transit Line 3 (LRT 3) projects.
It said that the pre-award phase for MRT 2 and LRT 3 looks likely to gain traction in 2H15, with a total estimated cost of RM34 billion. It was also noted that the cost per km of MRT 2 was almost double that of the LRT 3 as 26% of the total length of MRT 2 will be underground versus the LRT 3’s 1%.
Other than that, the project development partner (PDP) award for the LRT 3 is targeted for July 15 (likely 6% PDP fees), while the PDP for MRT 3 has already been awarded to Gamuda – MMC JV.
Awards for LRT 3 could begin from end-15 at the earliest while MRT 2 in 1H16.
The research house stated that 2H15 is likely to be a period of good news flow for both LRT 3 and MRT 2.
The re-alignment of MRT 2 that has resulted in a longer underground portion can be positive for Gamuda as it could mean a larger share of contract value compared to the circa RM4 billion package for MRT 1.
“We expect the pre-qualification and award phase to also feature other contractors under our coverage that have won MRT 1 packages, including IJM Corporation Bhd ( Financial Dashboard) and Sunway Bhd ( Financial Dashboard)," it said.
The research house named Gamuda Bhd ( Financial Dashboard) and Muhibbah Engineering Bhd ( Financial Dashboard) as its top picks for the sector.
I sold it on friday. Market is unstable now. Fitch may downgrade malaysia 's credit rating in june. If this happens, sure big drop in share mkt. Be careful.
Muhibbah Engineering: Upbeat on securing jobs. Muhibbah Engineering is confident of securing some of the MYR5b worth of contracts that it is bidding for currently. The group has been quite successful in its bidding exercise in the last few years. The construction and engineering group is bidding for more than 50 jobs, including the USD27b (MYR97b) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang Johor, and infrastructure contracts under the 11th Malaysia Plan. (Source: New Straits Times)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
winstontay76
8 posts
Posted by winstontay76 > 2015-05-14 13:10 | Report Abuse
Drop again