Moving forward, AME is equipped with an outstanding construction orderbook of RM304.2m to sustain earnings visibility over the next 2 years. For 1HFY23, new property sales of RM124.0m makes up to 49.6% of our projection at RM250.0m. This brings unbilled property sales to RM122.9m (up from RM120.4m in 1QFY23) to sustain the property development segment earnings for 2 years.

ECONBHD has secured some RM108.0m worth of contracts year-to-date. This makes up to 43.2% of our orderbook replenishment target of RM250.0m for FY23f. Future job wins may continue to skew towards the piling and foundation works for property sector, given that the newly elected government will take some time to settle in before the focus shifting towards mega-infrastructure related projects.

Outlook wise, as all the countries that the group operates in have resumed economic activities with minimal restrictions, demand have improved in both the poultry and feedmill segments, leading to the revenue expansion. Nevertheless, the high cost of materials and the attempts by governments to manage inflation may continue to create uncertainties on the group’s performance.

OCK remains committed in the delivery of order book of more than RM410.0m, mainly from the JENDELA programme as well as the rollout of 5G network. With the Access Agreement (AA) with Digital Nasional Bhd (DNB) being completed, we expect the rollout of 5G network services to speed up over the foreseeable future to meet DNB’s target of reaching 80.0% of 5G population coverage by 2024.

OPTIMAX’s first satellite clinic in Skudai, Johor, and the new ACC in Bahau, Negeri Sembilan have both commenced operation in 3Q22. We expect the new ACC to have gestation period of less than 1 year, similar to other small ACC. To date, Optimax operates an extensive network of 13 ACC, 1 specialist hospital, and 1 satellite clinics, while eyeing another 5 satellite clinics that are currently undergoing renovation.

With approximately RM266.0m worth of property sales recorded during the quarter, 9MFY22 sales at RM744.0m is largely on track to meet our expectations of RM1.00bn for FY22f. Moving forward, OSK’s property development unbilled sales of approximately RM1.04bn (slightly up from RM976.0m recorded as at end-2QFY22) will sustain earnings visibility over the next 18-24 months.

Hibiscus Petroleum Bhd (HIBISCS) is the Malaysia’s first public listed independent O&G E&P firm, focusing on the development and production of oilfield assets in United Kingdom, Malaysia and Australia. In 1QFY23, net oil, condensate and gas production rate stood at an average 16,775 barrels per day (bpd).

We reckon that the construction segment may continue to bleed, given that the balance EPC works at Vietnam is expected to be recognised only in 2HFY23. Moving forward, outstanding orderbook of more than RM200.0m will provide revenue visibility over the next 2 years.