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.

The FBM KLCI ended slightly lower on profit taking activities within selected consumer and plantation heavyweights. We expect investors to reassess the corporate earnings and reposition on solid companies as we are heading into the final day of reporting season. Meanwhile, we expect the easing of restrictions in China will help the market sentiment overall. Hence, buying support should emerge within the technology and recovery themed sectors. Nevertheless, upside on the broader market may be kept as traders be focusing on the inflationary pressure that may dampen the corporates’ margins.

Sunway Construction Group Bhd (SUNCON) is regarded as Malaysia’s largest pure play construction company listed on Bursa Malaysia. The group is capable of delivering integrated construction services works, having delivered various private and public infrastructures and building works over the past 40 years.

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.