Generally, construction sector is generally perceived as a “low margin” industry due to their high unpredictability, cash flow constrains that lead to lower margin, as well as exposure to increment of building material prices. Hence the lower valuation, single digit price-to-earnings of for the companies
huge rise in the development budget to RM95 billion from the previous RM75.6 billion, which could provide impetus for the construction sector and the overall economy. The building and upgrading of road, rail as well as rural and urban infrastructure will help boost the economy.
Given the ongoing tensions between the US and China, the Malaysian government is trying to lure companies and multinational corporations from China to relocate to Malaysia. Although Indonesia and Vietnam have low labour costs, our E&E sector has very good infrastructure in place
SSB8 can enjoy double digits margin because they are less involved in direct labor and material handling, hence their cost of labor and raw material are low.
construction sector is generally perceived as a “low margin” industry due to their high unpredictability, cash flow constrains that lead to lower margin, as well as exposure to increment of building material prices.
SSB8 has the backers of Platinum Victory Group as well which means there will be better projects to be passed on to the company. FYI, Platinum Victory Group had the experience completing projects over RM9 billion in total GDV
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
WongGK92
273 posts
Posted by WongGK92 > 2022-10-18 07:27 | Report Abuse
Once their regularization plans are completed, this counter will back to the market. Expected it will be relisted on November I think