HLIB rates Malaysian construction sector 'overweight' - News Summed Up

HLIB rates Malaysian construction sector 'overweight'


KUALA LUMPUR: Hong Leong Investment Bank (HLIB) has maintained its “overweight” call on the construction sector following an increase in the total number of contracts awarded, especially in the rail section. “Our top picks are centred on the upcoming influx of mega rail projects,” it said. In the note, HLIB highlighted that domestic contracts awarded to listed contractors in fourth quarter last year (4Q17) amounted to RM10.9 billion, an increase of 41 per cent quarter-on-quarter (q-o-q) and 61 per cent year-on-year (y-o-y). The increase was driven by Light Rail Transit line three (LRT3) contracts worth RM5.5 billion awarded to Sunway Construction Group Bhd, WCT Holdings Bhd, Gabungan AQRS Bhd, Mudajaya Group Bhd and Econpile Holdings Bhd. The bulk of foreign contracts came from IJM Corp’s job on the Solapur-Bijapur Highway in India, worth RM1.3 billion.– BERNAMA


Source: New Strait Times January 03, 2018 08:37 UTC


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