Solarvest Holdings Bhd (SLVEST) is regarded as one of the leading solar turnkey engineering, procurement, construction and commissioning (EPCC) service provider with established track record in Large Scale Solar (LSS) Photovoltaic, residential, commercial and industrial properties projects. To-date, SLVEST has developed over 250.0MW of large-scale solar projects in Malaysia.

The FBM KLCI extended its winning streak, bucking the negative performance on Wall Street. While the key index managed to trade positively against the global stock markets, investors should remain cautious with the ongoing increased volatility environment attributed to the hawkish tone by the Fed; we expect the noise to continue until the next CPI data release and FOMC meeting.

As at end-2QFY22, OCK owns and manages over 4,800 telco sites (3,000 sites in Vietnam, 1,200 sites in Myanmar and 600 sites in Malaysia) that will provide stream of recurring income over the long term. We note that towerco expansion is largely on track with OCK aims to register more than 5,000 telco sites (targeting 3,200 sites in Vietnam, 1,300 sites in Myanmar and 800 sites in Malaysia) by end-2022.

With the quicker-than-expected change of tide in demand, material prices, both FeSi and SiMn are expected remain unexciting over the foreseeable future (below USD2,000/MT and USD1,300/MT respectively). We believe uncertainties persisted surrounding the global inflationary pressure may continue to sap demand.

We continue to favour OSK, on the back of (i) prudent new property development launches to avoid an overhang of unsold stocks scenario, (ii) stable loan portfolio and (iii) dividend income from strategic investment in RHB. We reckon that demand for affordable housing remains on the fore with the group’s future launches continue to place great emphasis through competitive pricing.

We expect the construction industry to remain beset by the rising costs of labour and raw materials. The price index per unit of steel & metal section increased 15.8% YoY in July 2022, according to the building and structural work, department of statistics Malaysia.

The FBM KLCI eked out marginal gains, outperforming the negative regional markets as selling pressure subsided after the morning session selldown. Still, we expect global market sentiment to remain cautious on the back of persistent concerns over interest rate hikes going forward as the Fed stands firm on its hawkish stance. Meanwhile, on the local front, an increase in Malaysia’s July inflation rate may lead to another Overnight Policy Rate hike by Bank Negara.

As of 1QFY23, AME is equipped with an outstanding construction orderbook of RM318.7m to sustain earnings visibility over the next 2 years. Meanwhile, unbilled property sales of RM120.4m (up from RM91.3m in 4QFY22) will sustain the property development segment earnings for 2 years. After delivering new property sales of RM168.4m in FY22, we expect stronger performance to come by for FY23f at RM250.0m (1QFY23 new property sales at RM65.8m).