After a difficult period for the construction segment over the past two years, we think that a recovery is largely on sight. For now, Protasco will leverage on its past expertise to ride onto the Budget 2022 announcement for the construction of lowcost housing projects; PPAM and we note that tenderbook is currently at approximately RM3.00bn.
Read MoreMoving forward, the progressive 5G services rollout by Digital Nasional Berhad (DNB) to target 36.0% of high-density areas including in major cities in Johor, Selangor, Penang, Sabah and Sarawak in 2022 is largely on track. This will provide an opportunity for OCK to tap into the deployment of 4,000-5,000 5G telecommunication sites in 2022. Meanwhile, OCK’s outstanding orderbook of RM280.0m will keep the group busy over the next 2 years.
Read MoreIn general, the coal fired thermal power plant in Vietnam is expected to contribute to the bottom line over the foreseeable future. We gather that JAKS remains committed towards the expansion into the renewable energy sector, both local and internationally with 2 MoU signed in 2021 for the (i) potential collaboration on the development in renewable energy plants such as solar and hydropower in Sabah and (ii) development of 1,500-MW liquefied natural gas (LNG) power project in Vietnam. In the meantime, LSS4 project is slated to commence operations by 3Q23.
Read MoreIn 3QFY22, overall performance was dragged by the weaker property sales. Moving into the final quarter of the financial year, we reckon that the pace of recovery will remain in place (albeit still in a tepid manner) the borders have yet to be re-opened. Nevertheless, we foresee no further interruption of work sites and that may provide some room for breather for the construction segment.
Read MoreFor Optimax’s ACC network expansion plan, the new ACC located in Bahau, Negeri Sembilan is currently under renovation and is expected to operate starting from 2Q22. Besides, the group is setting up a satellite clinic in Johor which is targeted to commence its operation starting from end of 1Q22.
Read MoreTaking cues from the global markets and the ongoing geopolitical tension, the FBM KLCI traded lower. However, as the investors and traders brushed off the concerns over the Ukraine-Russia tension, we believe bargain hunting activities may return to the local market and lookout for oversold stocks for trading opportunities; do note that foreign funds are still net buyers in the market. Meanwhile, safe-haven related sector such as gold are likely to take a setback for today amid extended trading movements yesterday.
Read MoreThe Cambodia project and the resumption of local works as all work sites that have resumed operations since mid-August 2021 is expected to anchor the revenue in subsequent quarters. Meanwhile, the tepid orderbook replenishment is expected to remain in place in view that property developers holding after off their launches after the end of Home Ownership Campaign in 2021 and margins are expected to remain compressed by the elevated building material prices.
Read MoreThe FBM KLCI notched higher amidst the mixed regional markets, mainly propelled by the banking and plantation heavyweights. We believe the commodity related sectors will remain buoyant with the firm crude palm oil and crude oil, which are trading around RM6,054 and USD96.84, respectively. On the technology sector, the rebound could be short lived tracking another selldown in Nasdaq overnight. Besides, gold price continues to charge higher, trading above USD1,900 per ounce on the back of the unsettled geopolitical tensions between Russia and Ukraine.
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