News by Kenanga Research

Kenanga Research: Maintain outperform with a lower target price (TP) of RM1.25.

MMC-Gamuda JV will proceed with MRT2 works in full swing albeit at a lower contract sum for the remaining works without compromising the original timeline.

Kenanga Research: Maintain “market perform” with a lower TP of 41 sen.

With the East Coast Rail Link and Kuala Lumpur-Singapore high speed rail projects still uncertain at the moment and the Klang Valley Double Track 2 to be retendered, Pestech’s focus will switch back to the region for the transmission line, substation and underground cable projects.

Sime Darby Property has been actively rationalising its non-core assets and selling down its inventories. 

Even though the finance ministry has given the green light for the construction work of LRT3, the project cost review and ongoing negotiations between the George Kent-MRCB joint venture (JV) and the government took longer than expected.

Currently, Eversendai’s outstanding order book stands at around RM2.8 billion, providing visibility for the next 1-1½ years.

On the back of a significantly better property Ebit margin of 40% contributed from projects in Johor, Melaka and Ipoh on better operating efficiency and product mix.

We laud Sunway for its land banking activity in Singapore as they are one of the few developers in town that is landbanking instead of selling land as seen in other developers weathering the weak property sentiment in Malaysia.

For FY18, Kerjaya Prospek has secured about RM500 million worth of contracts (from Bukit Bintang City Centre and Seri Tanjung Pinang Phase 2), accounting for 42% of our RM1.2 billion targeted replenishment.