Moving forward, the progressive 5G services rollout by Digital Nasional Bhd (DNB) is expected to require 3,000-4,000 sites of 5G wholesale network by end-2022. Already, DNB has engaged OCK to conduct site survey for 5G infrastructure works. As of end 1QFY22, OCK will be kept busy with the delivery of outstanding order book of more than RM280.0m, from the JENDELA programme.

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.

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.

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.

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.

Moving forward, production has returned to the norm in 2Q22 and the move will likely to boost production beyond 600 tonnes for the quarter. Consequently, we expect MSC to deliver 12.0 tonnes/day of tin ore towards the end of FY22f (current production is approximately 11.0 tonnes/day).

Moving forward, we expect KGB to deliver improved performances particularly in 2H22, back by the relaxation of Covid-19 control measures in China, while the group remain focus onto the execution of works secured in FY21. Locally, KGB will also be kept busy with the large-scale construction work that was secured at Sarawak towards end-2021. In the meantime, the utilisation rate of liquid carbon dioxide (LCO2) plant is at 70.0%.