Malaysia - Infra Projects, Building Materials etc

[winston]

China Company Bags $2.43B Contract for Singapore/Malaysia Transit System

The job involves building a 25-meter high viaduct and tunnels for the RTS link between Singapore and Johar Bahru city of Malaysia at a cost of $135 million.

The bridge connects the underground station in Woodlands North in Singapore to the above-ground Bukit Chagar station in Malaysia.

Source: ENR

https://www.enr.com/articles/51299-chin ... it-project

[winston]

RM280 bil needed to upgrade water infrastructure — Tuan Ibrahim

RM40 billion was required to replace the old pipes across the country as the lifespan of these pipes is up to 45 years.

For the record, about 4,000 kilometres of the over 8,000 km of water pipes in Kelantan are old and need to be replaced to avoid the risk of the pipes leaking.

Source: Bernama

https://www.theedgemarkets.com/article/ ... an-ibrahim

[winston]

These listed companies win the bid for LSS4 project

by Adam Aziz

March 12, 2021 18:17 pm +08

KUALA LUMPUR (March 12): The Energy Commission has announced the list of 30 shortlisted bidders of the Large Scale Solar @ MEnTARI (LSS4), totalling 823.06MW out of the offered 1,000MW.

This comprises 20 companies covering 323.06MW under Package P1 at between 10MW and below 30MW, as well as 10 companies across 500MW under Package P2 between 30MW and 50MW.

The shortlisted bids for Package 1 ranged between 18.5 sen/kWh and 24.81 sen/kWh. Meanwhile for Package 2, the bids ranged between 17.68 sen/kWh and 19.7 sen/kWh.

Among the identified listed companies that have been awarded the projects are:

Advancecon Holdings Bhd via Advancecon Solar Sdn Bhd at 26MW

Three bids by Solarvest Holdings Bhd via Atlantic Blue Sdn Bhd totalling 50MW

MK Land Holdings Bhd via MK Land Resources Sdn Bhd at 10.95MW

Tan Chong Motor Holdings Bhd through a consortium involving Tan Chong Motor Assemblies Sdn Bhd at 20MW

JAKS Resources Bhd via JAKS Solar Power Sdn Bhd at 50MW

Kumpulan Powernet Bhd with Perbadanan Kemajuan Negeri Pahang at 50MW

Ranhill Utilities Bhd at 50MW

Gopeng Bhd at 50MW

Tenaga Nasional Bhd via TNB Renewables Sdn Bhd at 50MW, and

Uzma Bhd via Uzma Environergy Sdn Bhd at 50MW.

The commissioning of the project will be in late 2022 or early 2023.

Source: The Edge

https://www.theedgemarkets.com/article/ ... s4-project

[winston]

ECRL extension, ports' connectivity a significant move — expert

by Nurunnasihah Ahmad Rashid

The decision to extend the East Coast Rail Link's (ECRL) original alignment of 640km to 665km is a very significant move as it will be connected to both North Port and West Port.

The bypass line will make the KTMB rail services more efficient as it serves as a significant freight relief line to the KTMB which currently faces bottlenecks when traversing Kuala Lumpur's central business district.

The ECRL, which is expected to be ready in 2026, reached 20.37% completion in January 2021 compared to the original schedule of 19.39%.

Source: Bernama

https://www.theedgemarkets.com/article/ ... %94-expert

[winston]

All aboard the construction sector

By ROYCE TAN

Following the confirmation that the once-shelved third MRT line (MRT3) is now a go, the government has also announced that the East Coast Rail Link (ECRL) will now be reverted back to its original alignment and is estimated to cost around RM50bil.

Source: The Star

https://www.thestar.com.my/business/bus ... ion-sector

[winston]

MRT to raise private funds to finance 10-30% MRT3 project

KUALA LUMPUR: Mass Rapid Transport Corp Sdn Bhd (MRT Corp) expects to raise private funds to finance 10 per cent to 30 per cent of the total MRT Circle Line (MRT3) project.

"Right now, we are looking at a hybrid model and using our own initiative to invite private companies,” he said in a briefing session on "Insights: MRT3 Circle Line”, adding that the tenders are scheduled to be opened in August this year.

Speaking to reporters, he hoped the 10-year construction project could start early next year, subject to the government’s approval.

He said the route for the entire Circle Line would cover 50 kilometres which will have over 30 stations and 10 interchange stations in the capital city, with 40 per cent comprising underground routes.

"We will do it in five phases and each phase when completed can operate independently to connect to interchange stations without having to wait for the entire project to be completed in 10 years,” he said.

Mohd Zarif said the MRT3 is expected to give 3.5 times higher return from the overall cost of expenditure for the rail project.

According to a news report, Hong Leong Investment Bank Bhd had estimated the project to cost between RM20 billion and RM22 billion with one-third of the alignment to be underground.

On April 3, Transport Minister Datuk Seri Dr Wee Ka Siong said the construction of the MRT3 project, which was suspended by the previous government, will begin in the second half of this year.

Source: Bernama

https://www.thestar.com.my/business/bus ... t3-project

[winston]

Going gets tough
Downgrade to NEUTRAL

New public infrastructure spending has been slow YTD due to pandemic management and we expect this to persist into most of 2H21.

We anticipate two major trends:
(i) PFI as the financing mode for new major infrastructure projects;
(ii) Restructuring of highway concessions – both to alleviate the government’s fiscal burden.

Amid a challenging landscape, we prefer stocks with strong balance sheet and delivery track record; keeping our BUY on IJM, GAM and LTK.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/225381.pdf

[winston]

Construction – Malaysia
In Need Of A Real Catalyst

2H21 earnings are expected to remain weak due to the restrictions imposed on
construction activities.

Based on the vaccination programme timeline, we could expect progress billings to accelerate starting 4Q21/1Q22.

The newsflow on the MRT3 and PBHS projects might provide some trading opportunities in the sector.

The government has its plate full with handling pandemic-related issues, and this implies slow infrastructure contracts rollout. Maintain MARKET WEIGHT.

Source: UOBKH

https://research.uobkayhian.com/content ... 728024a246

[winston]

Malaysia Construction

12MP: Sizeable GDE allocation, plus 3 priorities of interest

MYR400b GDE + PPP + highway + water

Although there was no mention of new major infra projects in the 12MP blueprint, the sizeable MYR400b GDE allocation (+61% vs. 11MP spend) do imply considerably high levels of construction activities during the 12MP period with potentially hefty bump-ups in 2023-24, when the GDE could peak.

Three priorities in the 12MP blueprint interest us:
(i) a new PPP blueprint;
(ii) restructuring the model for highway development;
(iii) adoption of a comprehensive water transformation agenda.

Our preferred BUYs are GAM, IJM and LTK.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/235241.pdf

[winston]

Building Materials – Malaysia
Prolonged Upswing In Commodity Prices To Boost Earnings In 1H22

The aluminium, tin and ferroalloy segments, registered explosive earnings in 4Q21,
mainly due to stronger prices and better demand abroad.

Cement players turned profitable, supported by higher ASPs and improved local demand.

Meanwhile, steel companies posted lower earnings, pressured by lower steel prices and higher raw materials costs.

We expect commodity players to perform better in 1H22, reflecting the new record-high ASPs.

Maintain OVERWEIGHT. Top pick: Press Metal.

Source: UOBKH

https://research.uobkayhian.com/content ... 59eb14b1d3