Malaysia - Infra Projects, Building Materials, Utilities etc

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Sat Dec 21, 2019 8:14 am

Fitch: Other projects may be delayed if HSR revived

By P. ARUNA

KUALA LUMPUR: The government is likely to delay or push back some of its other infrastructure projects in the pipeline, if the KL-Singapore High Speed Rail (HSR) project is revived.

Fitch Solutions said the government is likely to do this as a measure of financial prudence, so as to keep the amount of public debt in check, given the hefty price tag attached to the HSR project.

Fitch’s infrastructure analyst James Su said the project is expected to be revived, but only if the a new deal to lower the cost of the project can be struck between the Malaysian and Singaporean authorities.

“We see this as a key challenge that both parties will face as they continue to negotiate the project, ” he said.

He noted that Prime Minister Tun Dr Mahathir Mohamad had mentioned decreasing the speed of the line as a possible way to lower the cost.

This, Su said, had its limitations, for if speeds were too low, commuters between KL and Singapore may opt for air travel instead, lowering the demand for the HSR line and possibly making the project financially unfeasible.

Dr Mahathir had said on Tuesday that talks on the resumption of the HSR project may happen next year.

He told reporters that the government hoped to reduce the cost of the project, and one way to do this is by reducing its speed from 400kph.

In December 2016, the Barisan Nasional administration signed a bilateral agreement with Singapore to build a 350km high-speed railway, linking Kuala Lumpur and Singapore, with an estimated cost of RM110bil.

However, the project was later temporarily suspended by the Pakatan Harapan government, citing high costs.

Su said the potential revival of the project could boost growth, not only within the infrastructure sector, but also within the broader buildings construction sector.

“Enhanced accessibility, especially in smaller locations along the proposed HSR alignment, will create opportunities in real estate, industrial development and tourism-related projects, ” he said.

On potential beneficiaries of the HSR, Su said businesses operating in the construction industry (contractors, real estate developers, raw material providers, equipment providers) and residents and businesses located along the planned route, would benefit from the enhanced connectivity.

He added that the country providing the HSR technology and expertise – expected to be Japan, China, South Korea or France – would also benefit.

For China, he said the completion of the HSR project will bring them one step closer to completing the Pan-Asian railway network, a network conceived by China that aims to connect Kunming to Singapore, and enhance railway connectivity within the Mekong region.

Source: The Star

https://www.thestar.com.my/business/bus ... sr-revived
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Tue Jan 28, 2020 10:15 am

Building Materials – Malaysia
Cement: Firmer Footing; Steel: Still Bleak


The cement industry is on track for a recovery in 2020, evident from the easing of the price war and we expect demand to pick up gradually.

On the other hand, the outbreak of the coronavirus will exert greater pressure on steel prices as there are concerns of a further slowdown in China’s economy, the world’s biggest steel
producer and consumer.

Maintain MARKET WEIGHT on the building materials sector but OVERWEIGHT on the cement segment. Our top pick is Hume.

Source: UOBKH

https://research.uobkayhian.com/content ... 24825694d5
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Mon Feb 03, 2020 10:49 am

Deafening silence over surge in cement prices despite govt assurance, says Dr Wee

By MARTIN CARVALHO

“The price of cement has rose from RM180 a ton to RM230 a ton. In February, 2020, the price of cement has risen from RM260 to RM280 a ton.

“This is a 44% rise in four months.


Source: The Star

https://www.thestar.com.my/news/nation/ ... ays-dr-wee
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Wed Feb 12, 2020 9:45 am

Building Materials – Malaysia
Cement: From Strength To Strength


Earnings for cement companies are likely to have improved in 4Q19 on higher bulk and bag cement prices.

Channel checks confirm that cement producers have announced hikes which should bring bulk cement prices to RM240-250/tonne in February, but we have conservatively factored in a gradual and measured implementation to RM230-240/tonne.

We raised our earnings forecasts and target price for Hume to RM2.20 (from RM1.45). Other cement stock should also rerate including Malayan Cement.

Source: UOBKH

https://research.uobkayhian.com/content ... 581f28f506
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Fri Feb 14, 2020 9:00 am

Construction stocks gain momentum

By TOH KAR INN

“However, there are expectations that the construction sector will resume its growth, from that 1% in the fourth quarter of 2019.

“This is on the back of major projects being revived, such as the East Coast Rail Link, Pan Borneo Highway and mass rapid transit 3, ” he said.


Source: The Star

https://www.thestar.com.my/business/bus ... n-momentum
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Fri Feb 14, 2020 9:40 am

Possible higher profits for cement players

The research house said cement prices should sustain at the RM240 to RM250 per tonne level, given the break-even of RM230 per tonne.

According to UOB Kay Hian, it has gathered that cement demand was down to 17 million tonnes in 2019 compared to 19 million tonnes in 2018.


Source: The Star

https://www.thestar.com.my/business/bus ... nt-players
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Mon Feb 17, 2020 10:47 am

Efficacy Is Utmost Important

We expect the government to expedite its planned pipeline economic policies, including the gradual rollout of shelved catalytic projects such as the ECRL and potentially PBHS (in 2H20).

Also, the market is anticipating projects like the ECRL to kick off soon, as witnessed by the recent rally in stocks such as GAQRS.

Separately, we reckon the government will further deliberate on the proposed Gamuda’s toll
takeover and takeover price (if any).

Maintain MARKET WEIGHT.

Source: UOBKH

https://research.uobkayhian.com/content ... 0199962cf4
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Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Tue Feb 18, 2020 9:16 am

Construction and building material - Recovering technicals and increasing trading interest

Trading Catalyst

Last week, the Finance Ministry commented that a potential economic stimulus measure may be revealed (tentatively on 27th Feb) and the quantum will depend on the duration and impact of the Covid-19 outbreak.

Although the stimulus measures could be targeting just the affected industries such as tourism, logistics and finance sector, we do not rule out that some of the mega projects (i.e. ECRL/ PTMP) may be expedited in 1H20.

Also, soon after the comments by Finance Minister, construction (i.e. earthworks /pilling /consultant) and building material (steel and cement) segments have seen increasing trading interest.


Technical View
(i) HSSEB (S: RM0.81-0.82, R: RM0.90-0.94, LT TP: RM1.00, CL: RM0.79)
(ii) MCEMENT (S: RM3.30-3.40, R: RM4.06-4.15, LT TP: RM4.46, CL: RM3.36)
(iii) MELEWAR (S: RM0.27-0.28, R: RM0.355-0.38, LT TP: RM0.45, CL: RM0.265)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, HLIB
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