Malaysia - Infra Projects, Building Materials etc

[winston]

not vested

Water operators will incur losses if they can’t set tariffs, says minister

Nik Nazmi Nik Ahmad says they are set to lose an estimated RM490 million a year.

by Dineskumar Ragu

Some states had not raised water tariffs for 40 years while 60% of treated water in some others did not reach consumers.

The average water tariff price in the peninsula and Labuan – expected to increase to RM1.59 per cubic metre from RM1.43 per cubic metre due to adjustments approved by the previous government – was still lower if one took into account the water operators’ capital expenditure and operating expense, which was RM2.03 per cubic metre.

Source: FMT

https://www.freemalaysiatoday.com/categ ... -minister/

[winston]

Construction – Malaysia
3Q23 Results In Line; Better Prospects Ahead

3Q23 earnings are in line with expectations with sector earnings spiking 28% qoq in tandem with higher revenue.

We anticipate a brighter sector outlook ahead on account of the sequential earnings recovery as well as improved job flows.

The rollout of mega projects (eg MRT3) is expected to breathe new life into the earnings trajectory.

Maintain MARKET WEIGHT. Our top picks are Gamuda, Ekovest and Kerjaya Prospek Group.

Source: UOBKH

https://research.uobkayhian.com/content ... 68fb241fea

[winston]

Construction companies set to benefit from big infrastructure projects

We think project awards may pick up from calendar year 2024 onwards, backed by the government’s record-high development expenditure of RM19bil allocated (2023: RM17.6bil) for transportation projects in 2024.

Gamuda Bhd, Sunway Construction Group Bhd and Kerjaya Prospek Group Bhd, will have commendable earnings visibility over the next four years.

Key downside risks to our sector call are longer-than-expected delays in contract roll-outs and larger-than-expected cost reductions for the MRT3 project.

Source: The Star

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

[winston]

RHB IB stays overweight on building materials sector, top picks Press Metal and Malayan Cement

By Surin Murugiah

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/693872

[winston]

Construction sector to see more government contract flows in 2024

Hong Leong Investment Bank (HLIB) Research is bullish on the construction sector in 2024 in anticipation of public project contract flows that could boost contract awards beyond current contract levels.

In a recent update, the research firm upgraded the construction sector to "overweight", with Gamuda Bhd and Sunway Construction Bhd as its top picks.

HLIB also expects a pick up in capex in the water space as tariff hikes are slated for next year.

Source: The Star

https://www.thestar.com.my/business/bus ... ws-in-2024

[winston]

Construction
Data centre projects filling the MRT 3 void

Government rollout picking up; data centres in Johor can replace MRT 3.

Consensus FY24F/FY25F EPS raised by 44%/76%, leaving valuations relatively unchanged over a period of more than one year.

Gamuda, Suncon and Econpile are our top picks and have economic moat.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 7B75086FB4

[winston]

Huge orders forecast to drive building industry

Strong flow in new orders for data centres, semiconductor factories and industrial warehouses.

Sunway Construction Group Bhd (SunCon), Gamuda Bhd and YTL Corp Bhd would stand out as data centre winners.

CGS Research pointed to Gamuda, SunCon and Econpile Holdings Bhd, saying it liked contractors with a strong execution track record and economic moat.

Source: The Star

https://www.thestar.com.my/business/bus ... 0of%20MRT3

[winston]

Strong start for construction sector in 1Q

Domestic contract awards to listed contractors totalled RM6.96bil in the first quarter of this year (1Q24), which was up 45% quarter-on-quarter.

Going forward, HLIB Research said it expects public infrastructure projects to drive contracts in the coming quarters, with sizable projects in the pipeline.

“Johor has been touted as the fastest growing data-centre market in South-East Asia. We anticipate further developments on the Johor LRT (RM20bil) and Kuala Lumpur-Singapore high-speed rail in the coming months.

Source: The Star

https://www.thestar.com.my/business/bus ... ctor-in-1q