Malaysia - Infra Projects, Building Materials etc

[winston]

Steel and cement prices continue to rise in March

The unit price index of steel rose 0.9 per cent in March 2023 from 1.5 per cent in February in tandem with the increasing trend of iron ore and steel prices at the global level.

the unit price index of cement rose by 1.1 per cent in March compared to February, attributed to the rise in production costs, including the price of raw materials such as limestone, coal, energy, and shipping costs.

The unit price index for cement and bricks, as well as walls, increased by 10.2 per cent and 8.0 per cent, respectively, in March compared to a year ago.

The unit price index for steel recorded a decrease of 0.6 per cent.

Source: Bernama

https://www.thestar.com.my/business/bus ... e-in-march

[winston]

Building Materials – Malaysia
Rocky Start Entering 2023

Hard commodity prices remain volatile due to weak sentiment from the fear of a global
recession.

However, prices of hard commodities such as aluminium, ferroalloy and tin, have gradually rebounded on the back of China’s economic reopening, which has helped to stimulate demand.

Continued supply disruption and the energy crisis also put further pressure on the ongoing shortage due to the global decarbonisation agenda.

Maintain OVERWEIGHT. Top pick: Press Metal.

Source: UOBKH

https://research.uobkayhian.com/content ... cbc303e31c

[winston]

Positive outlook on building materials sector despite volatility

Prices of hard commodities such as aluminium, ferroalloy and tin , have gradually rebounded on the back of China’s economic reopening.

We expect prices to improve on the back of the steel recovery in China, as it is the largest player, consuming and producing 60% to 70% of global ferroalloy.

UOBKH's top picks are Press Metal Aluminium Holdings Bhd and Malaysia Smelting Corp Bhd, with target prices of RM6.10 and RM2.69.

Source: The Star

https://www.thestar.com.my/business/bus ... volatility

[winston]

Constrn & Material - Overall
Risk-reward looks attractive

We upgrade the sector to Overweight (from Neutral). Bright spots in 2H23F are the MRT 3 project and possibly the HSR revival.

We raised the following stocks from Hold to Add: YTL (TP: RM1.00), MCement (TP: RM3.97), Sunway (TP: RM2.21) and Muhibbah (TP: RM0.90).

Our sector top picks are Gamuda, Sunway Construction, Sunway and YTL.

This note marks the transfer of coverage to Chong Tjen-San.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8A97CA0AE6

[winston]

CGS-CIMB lifts the construction and materials sector to ‘overweight’ from ‘neutral’

By Reyanna Ng

Better visibility of contract flow and political stability post the 15th general election, as well as growing numbers of overseas projects, followed by improved balance sheets across larger contractors.

Key downside risks that would impact the sector would be:-
(i) political instability
(ii) rising raw material costs and labour and
(iii) the lack of government funding.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/669695

[winston]

Kenanga maintains ‘overweight’ on building materials sector driven by better aluminium price

By Priyatharisiny Vasu

Kenanga Research maintains an "overweight" call on the building materials sector, particularly for aluminium, as it anticipates supportive aluminium prices due to supply constraints.
- Press Metal & Om Holdings

Steel players face challenges with weak domestic demand in China, particularly due to the sluggish property market there.

Engtex: Pipe replacement contracts will gain momentum in the near term, thus stimulating demand and fostering growth in top line.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/671121

[winston]

Building Materials – Malaysia

Fear Of Recession Dampened Prices; Cement Emerges As A Dark Horse

Despite the continuing volatility, prices of selected industrial commodities have bottomed out and are poised for a rebound in 2023:
a) amid easing inflation and peakish US interest rate cycle, and
b) as ongoing supply tightness will stimulate demand and support prices.

Meanwhile, cement stock Hume provides clear near-term upside reflecting, high cement prices and easing input costs.

Maintain OVERWEIGHT. Top picks: Hume and Press Metal.

https://research.uobkayhian.com/content ... d87e3e01ca

[winston]

not vested

HLIB Research neutral on construction, top picks are Gamuda, SunCon

Source: The Star

https://www.thestar.com.my/business/bus ... uda-suncon

[winston]

Non-ferrous metal players expected to shine

Kenanga Research said there is expected to be continued demand for the metals as fossil-fuel smelters are decomissioned while Western sanctions against Russian aluminium offer support.

We also gathered that aluminium smelters in China have not increased their production despite China’s reopening and the easing in fuel cost.

Kenanga however expects steel manufacturers to remains in the doldrums due to the absence of significant stimulus and a soft property market in China.

We gathered that the roll-out of large-scale infrastructure projects and a more meaningful pickup in the property sector in China are more likely to materialise towards the later part of 2023.

Source: The Star

https://www.thestar.com.my/business/bus ... d-to-shine

[winston]

RHB Research stays 'overweight' on construction sector as public projects gain momentum

By Sufi Muhamad

RHB Research's top picks for the sector include Gamuda Bhd with a "buy" call rating and a target price (TP) of RM5.27, followed by Sunway Construction Group Bhd (buy, TP: RM2.05) and Kerjaya Prospek Group Bhd (buy, TP: RM1.55).

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/675381