Expected normal profit taking. Very well absorbed. about 3.9m vol done this mornings high of 1.31. Strong base building for next up target to 1.31 to 1.38 range. A Step Up Staircase pattern
KUALA LUMPUR: Affin Hwang Capital Research estimates the infrastructure works for the Malaysian portion of the KL-Singapore High Speed Rail (HSR) could be worth RM35bil to RM40bil.
It said on Monday the project delivery partner (PDP) fee for the MRT1, MRT2 and LRT3 is based on 6% of the project cost.
“Based on the same fee structure, the Malaysian PDP for the HSR project will potentially earn net profit of RM1.60bil to RM1.82bil (applying a corporate tax rate of 24%) over the 2019-26 construction period or RM200mil to RM228m per annum (based on straight-line recognition basis),” it said.
Affin Hwang Research said based on 50:50 JV shares for Gamuda and MRCB, it estimate the potential earnings lift if the JV secures the project is 21%-24% and 63%-72% respectively in FY19E.
Assuming IJM Corp and Sunway Construction’s (Suncon) share of the PDP fee is 33% each, the potential earnings lift if the IJM Corp-Sunway Construction-Jalinan Rejang-Maltimur Resources JV wins the PDP contract is 25%-29% in FY20E for IJM Corp and 100%-114% in FY19E for Suncon.
The research house said twp major packages for the HSR project are expected to be awarded in 2018.
To recap, the PDP for the Malaysian portion of the HSR is expected to be appointed by end-1Q18 while the AssetsCo contract award is expected by end-2018.
“We believe the Gamuda-MRCB joint venture (JV) has a good chance of winning the bid for the PDP role. HSS Eng could win detailed design contracts for the HSR project.
“We remain Overweight the construction sector. Gamuda and HSS are among our top sector BUYs as potential winners for the HSR project,” it said.
KUALA LUMPUR: Affin Hwang Capital Research estimates the infrastructure works for the Malaysian portion of the KL-Singapore High Speed Rail (HSR) could be worth RM35bil to RM40bil.
It said on Monday the project delivery partner (PDP) fee for the MRT1, MRT2 and LRT3 is based on 6% of the project cost.
“Based on the same fee structure, the Malaysian PDP for the HSR project will potentially earn net profit of RM1.60bil to RM1.82bil (applying a corporate tax rate of 24%) over the 2019-26 construction period or RM200mil to RM228m per annum (based on straight-line recognition basis),” it said.
Affin Hwang Research said based on 50:50 JV shares for Gamuda and MRCB, it estimate the potential earnings lift if the JV secures the project is 21%-24% and 63%-72% respectively in FY19E.
Assuming IJM Corp and Sunway Construction’s (Suncon) share of the PDP fee is 33% each, the potential earnings lift if the IJM Corp-Sunway Construction-Jalinan Rejang-Maltimur Resources JV wins the PDP contract is 25%-29% in FY20E for IJM Corp and 100%-114% in FY19E for Suncon.
The research house said twp major packages for the HSR project are expected to be awarded in 2018.
To recap, the PDP for the Malaysian portion of the HSR is expected to be appointed by end-1Q18 while the AssetsCo contract award is expected by end-2018.
“We believe the Gamuda-MRCB joint venture (JV) has a good chance of winning the bid for the PDP role. HSS Eng could win detailed design contracts for the HSR project.
“We remain Overweight the construction sector. Gamuda and HSS are among our top sector BUYs as potential winners for the HSR project,” it said.
now waiting three good news for it to rise further, EDL highway compensation, GE, and Gamuda JV for HSR LDP, each news will create a wave....let's come faster.
Plus one more very significant event n announcement. The formal J/v Agreement with EPF for the Bukit jalil Sentral in which EPF will pay MRCB RM1.14B CASH for 70% of this TOD. BIG CASH INFLOW N BIG DISPOSAL GAIN FOR MRCB (TOD land is cost free )
Orange88 TO UPDATE YOU ON WHAT IS HAPPENING ON MBSB FORUM ON 8TH JAN
ATTENTION ISAAC YAP, LESSIE, RED EAGLE YOU BUY I BUY, YIPPY, ALI YUSOF, HH5599
BETWEEN JAN2 UNTIL NOW ORANGE 88 HAS STARTED A LOT OF EXCITEMENT ON MBSB AND ITS CW (PREVIOUSLY FGV AND SIME FORUMS)
SOUR GREEN EYE JOE TAY APPEARS ON THE SITE HECKLING ME, THREATENING TO SUE ME ETC
SHE HAD NO GUTS TO MEET ME AT BRICKFIELD POLICE STATION, (TEL NP GIVEN TO HER 03-79824999 AT JLN KELANG LAMA) NOR MCMC OFFICE FOR HER LENGTHLY ABUSE OF BLOGGERS HERE
FINE
NOW
WE INVITE JOE TAY TO FORECAST MBSB AND CW MOVEMENT BETWEEN NOW AND CNY
OR ANY OTHER STOCK FOR THAT MATTER
WE ARE ALL WAITING WITH BATHED BREATH AND LISTENING JOEY TAY
YOU HAVE WHAT YOU ARE CLAMORING FOR , DYING FOR....
Cant up everyday. Slight correction is healthy for the counter as short term traders wont be able to hold long. MRCB may close back at 1.29 today after some correction in 1st half...Mind you..
Long term, this is a Rm1.8 counter, it is just the matter whether you could earn more from buy low sell high. There should be a few up down before reaching 1.8 most probably this year end after ahjib lot win the election.
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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....
ehtan18
362 posts
Posted by ehtan18 > 2018-01-08 11:40 | Report Abuse
FGV very strong buy, going to break 2 , next will be MRCB.