We believe that the maintenance segment will remain as the key revenue and profit contributor for FY22f, backed by 2 long-term federal road and 5 long-term state road concession agreements that will ensure recurring income stream till 2029. Leveraging onto their expertise, Protasco will be tapping into the RM3.50bn allocated for infrastructure projects under Budget 2022.

The FBM KLCI rose in tandem with the regional peers on the back of continuous bargain hunting activities. As Wall Street saw a recovery overnight, we expect to see improving trading activities on the local front, especially the technology sector with Nasdaq trading above 12,000. Nevertheless, we expect traders to remain cautious going into final 2 days of the reporting season. On a sidenote, the FBM KLCI semi-annual review will be announced on 2nd June 2022.

Moving into the next financial year (FY32f), we reckon a recovery is largely on table following the re-opening of borders, which could potentially speed up the industrial property sales progress from international companies and construction work progress may also accelerate. With Malaysia having transitioned into the endemic phase, we foresee no major foreclosure of site works.

The FBM KLCI closed higher amid buying interest within telco and banking heavyweights. Given the strong rebound and follow through interest on Wall Street, we expect the spillover of buying support may emerge on the technology stocks on the local front and traders may focus on the recent bashed down technology leaders as some of their earnings have stabilised in the recent reporting season. However, we expect the upside to be limited given the unresolved Ukraine and Russia tension.

Moving forward, we believe contribution from vaccination programme will remain minor as majority of the Malaysian population have been vaccinated. Optimax’s main business focus will be on ACC network expansion, setting up satellite clinics and business expansion to extend its market reach in the country. As Malaysia transitions into endemic phase, the group saw a gradual improvement in the performance of its branches, with some branches returned to pre-Covid-19 levels.

Following the multiple lockdowns over the past 2 years that hampered work progress, we reckon that the construction industry will be in a slightly better position in 2022 as the country transitioned into the endemic phase. Still, we remain cautious on the rising costs of labour and raw materials that could detriment the already razor thin margins within the construction sector.

The FBM KLCI rebounded from a 4-day losing streak amidst mixed regional performances as investors scooped up beaten-down shares. Despite the rebound on Wall Street, we believe the market sentiment will remain cautious on the back of concerns over global supply chain crisis which may slowdown the pace of economic recovery. Meanwhile, under the current inflationary environment, investors may favour sectors that are benefitted from the commodity boom.

Moving forward, we believe the demand for poultry products should remain robust amid recovery in economic activities supported by continued progress of booster shots rollout. However, the industry may continue to face uncertainties stemming from supply chain disruptions and government’s attempts to manage food inflation. Such measures include the price control scheme implemented on chicken and egg effective until 5th June 2022 and the chicken exports ban from 1st June 2022.