(AQRS MK/Not Rated/RM1.46/Target: NA)

GAQRS’ massive changes from last year have begun to bear fruit, but earnings growth associated with the changes is still in the early stages. Since the management change, the group’s orderbook has soared to RM1.7b, gearing has reduced to 0.7x (from 0.86x) and construction margins have improved to the midteens. The group is set to benefit from the roll-out of the ECRL and government building jobs in Pahang. GAQRS trades at 9.8x 2018F fully-diluted PE, based on consensus estimate.

Source: UOB Kay Hian Research - 9 Jun 2017