Malaysia - Infra Projects, Building Materials etc

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Thu Apr 02, 2020 9:24 am

Building Materials – Malaysia
Impact From MCO


Bulk cement ASP eased from its peak in February. With the temporary shutdown of operations, a delay in the implementation of the previously announced price hike is likely.

Post-MCO, we believe that demand recovery will be slow, and we hence expect no further hikes for bulk cement prices.

Meanwhile, the steel segment will remain under pressure owing to weak demand and excess supply.

Maintain MARKET WEIGHT on the sector but OVERWEIGHT the cement sub-sector. Top pick
is Hume.

Source: UOBKH

https://research.uobkayhian.com/content ... f03aea9cfb
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Thu Apr 30, 2020 9:15 am

Construction-related - Rising optimism on the reopening of economic sectors

Trading Catalyst

After International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali commented on the reopening of economic sectors on Tuesday, construction index was the third leading sector (after technology and energy sectors), rising more than 1.5% yesterday.

We believe the feel-good factor came in as construction companies are allowed to up their work forces from 50% to 100% effective in the current MCO.

Some of the notable projects that are back online include LRT3, MRT2, Pan Borneo, TRX, WCE & ECRL.

With that, traders are advised to lookout for breakout opportunities such as GADANG, MUDAJYA and GBGAQRS, while ECONBHD will be anticipating a breakout.

Technical View

(i) GADANG (S: RM0.38-0.39, R: RM0.44-0.46, LT TP: RM0.53, CL: RM0.37)
(ii) MUDAJYA (S: RM0.275-0.285, R: RM0.32-0.355, LT TP: RM0.40, CL: RM0.27)
(ii) ECONBHD (S: RM0.48-0.49, R: RM0.57-0.60, LT TP: RM0.69 CL: RM0.475)
(ii) GBGAQRS (S: RM0.81-0.82, R: RM0.90-0.95, LT TP: RM1.12, CL: RM0.795)

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

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Wed May 06, 2020 11:12 am

Building Materials – Malaysia
Weathering The MCO


The industry is back to business during the MCO albeit at different paces for different companies.

As utilisation rates remain low following the gradual resumption, we sense that most companies are expecting a recovery in 2H20, which is in line with our expectation.

Maintain MARKET WEIGHT on the sector but OVERWEIGHT the cement segment. Top pick is Hume.

Source: UOBKH

https://research.uobkayhian.com/content ... da6bd9fc21
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Sun Jun 28, 2020 8:14 am

Government to continue mega projects that do not require additional funding, PM says

MUAR, June 27 — Several mega projects that do not require additional funding will be continued to provide economic opportunities as the government seeks to boost the country’s economy following Covid-19, Tan Sri Muhyiddin Yassin said.

Although enormous expenses were being spent to deal with the problems caused by Covid-19, the Prime Minister said another strategy to provide other economic opportunities was by continuing mega projects that had already been decided.

“For example, the East Coast Rail Link (ECRL) project involves an expenditure of RM40 billion, which other projects that were previously approved and do not require additional expenditure, are not stopped, instead they will continue.

“These include the project that we have decided, namely the Kuala Lumpur-Singapore High-Speed Rail (HSR) project, which will stop at various stations, including the Pagoh Education Hub,” he said at a dialogue during a meeting with community leaders from the Pagoh parliamentary constituency here today.

Muhyiddin, who is also Member of Parliament for Pagoh, said upon reviewing the HSR project, as the Prime Minister in the new administration, he found that there was a need to proceed with it but details on the project are still being worked out both governments.

At the same time, he welcomed the involvement of the private sector in the project, as it could assist the government in reducing its burden in implementing the HSR project.

Last month, the Malaysian and Singapore governments mutually agreed to extend the deferment of the 350 kilometre-HSR project to Dec 31 from May 31.

In a statement, Senior Minister cum International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali said both countries had agreed to resume discussions that would encompass some of the proposed changes in the commercial and technical aspects of the project.

Source: Bernama

https://www.malaymail.com/news/malaysia ... ng/1879420
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Mon Aug 24, 2020 11:12 am

June 3, 2020

Building Materials – Malaysia
Recovery In 2H20


The cement segment has made further recovery with improved utilisation rates post MCO and with bulk cement ASP having eased from its peak of RM250/tonne to RM230/tonne.

However, the steel segment remains under pressure with ASP declines, iron ore price hikes and the absence of industry consolidation.

Maintain MARKET WEIGHT on the sector but OVERWEIGHT the cement segment.

Source: UOBKH

https://research.uobkayhian.com/content ... 0f76336834
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Mon Aug 24, 2020 11:38 am

not vested

AmInvestment upgrades building material sector to Neutral

July 13, 2020

KUALA LUMPUR (July 13): AmInvestment Bank Research has upgraded the building material sector to “Neutral” (from Underweight) and said it sees a mixed picture for the sector.

In a sector update today, the research house said it believes the cement sector in Peninsular Malaysia has turned the corner, with more rational competition among the players following a major industry shakeout in 2019.

“For aluminium, we do not expect a V-shaped recovery in prices despite the gradual recovery in its consuming industries, given the build-up in inventory during the pandemic (as it is very costly to shut down and restart aluminium smelting plants).

“Meanwhile, despite the weak demand, local steel prices will at least hold up as local producers export the excess supply,” it said.

AmInvestment said cement prices in Peninsular Malaysia are expected to hold despite weak demand.

It said despite weaker demand due to the impact of the Covid-19 pandemic on construction productivity, and a tepid new infrastructure and building job flow in 2H20F, it expects cement prices in Peninsular Malaysia to hold steady (i.e. not to fall) at RM250/tonne in 2H20F (cement prices have been rising steadily from RM200/tonne in 1H19 to RM235/tonne in 2H19 and RM250/tonne in 1H20).

“We believe this is because of:
(1) the emergence of a price leader in the market (with a combined market share of close to 60% in terms of clinker capacity) following YTL Cement’s acquisition of Malayan Cement in 2019; and
(2) industry supply pressure having significantly eased with the recent shutdown of one clinker plant each by Malayan Cement and peer CIMA, that has effectively put clinker capacity totalling 2mil tonne per annum (8% of total industry clinker capacity) offline.

“On the back of low construction productivity and limited new infrastructure and building contracts in 2H20F, we project cement consumption in Peninsular Malaysia to decline by 30% to 10.5 million tonnes in 2020F (from 15 million tonnes estimated in 2019),” it said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... or-neutral
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Mon Aug 24, 2020 11:43 am

Malaysia's cement industry faces a host of strategic challenges

21 July 2020

The declining demand trends since 2015 were met by rising industry capacity as major cement players like YTL, Hume Cement and CIMA added new production lines between 2010-15.

Consequently, utilisation declined and led to a price war among cement manufacturers.

Prices declined from over MYR280/t (US$65/t) in 2015 to MYR190/t in 2019. At these prices, most producers are barely breaking even and some are losing money.

Going forward, the industry faces many challenges, such as an uncertain political situation, continued overcapacity and often ill-disciplined competition.

Although recent consolidation and an emphasis on industry profitability will help, the wreckage of Covid-19 is yet to be fully realised and the resilience of the Malaysian cement industry will be tested further.


Source: Consultancy.asia

https://www.consultancy.asia/news/3403/ ... challenges
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Fri Oct 23, 2020 9:22 am

Construction – Malaysia
A Dull Market For Now


We expect construction earnings to grow hoh in 2H20, underpinned by accelerated billings post-MCO and a low base in 1H20.

We do not expect much excitement from the sector at this juncture, due to the COVID-19 pandemic.

It forces the government to relook and prioritise its fiscal spending to address the pandemic.

We foresee only approved projects with ready financing to go ahead, such as the ECRL, RTS and
potentially, PBHS.

Top picks: Kerjaya and GAQRS. Maintain MARKET WEIGHT.

Source: UOBKH

https://research.uobkayhian.com/content ... f9d1ecd75e
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Thu Feb 11, 2021 9:18 pm

Mega projects to put economy back on the rails

The government is looking to put the economy back on the rails by continuing with the mega infrastructure projects like the ECRL, MRT2 and LRT rail projects.


Source: FMT

https://www.freemalaysiatoday.com/categ ... -366156373
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

Re: Malaysia - Infra Projects, Building Materials, Utilities

Postby winston » Tue Feb 16, 2021 3:52 pm

Building material sector to improve operating conditions in 2021

“We project the average net cement selling price in Peninsular Malaysia to rise by 8% to RM260 per tonne in 2021 forecast (2021F) (versus an estimated RM240 per tonne in 2020),” said Yap of AmInvest.

The analyst added that the conditions are conducive for a price hike with the emergence of a price leader in the market (controlling close to 60% of total industry clinker capacity) following YTL Cement Bhd’s acquisition of Malayan Cement Bhd in 2019, as well as the easing supply pressure after Malayan Cement and Cement Industries of Malaysia Bhd shut down one clinker plant each, effectively removing annual clinker capacity totalling two million tonnes equivalent to 8% of industry clinker capacity from the market.

“Meanwhile, we project cement consumption in Peninsular Malaysia to only improve by 5% to 4.4 million tonnes in 2021F (from 4.2 million tonnes estimated in 2020) driven by the gradual resumption of construction activities (of ongoing projects) and new property launches,” he added.


Source: Malaysia Reserve

https://themalaysianreserve.com/2020/12 ... 20net,2020)%2C%E2%80%9D%20said%20Yap.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118526
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to ASIA, OCEANIA & AFRICA: Data, News & Commentaries

Who is online

Users browsing this forum: No registered users and 17 guests