KUALA LUMPUR, Sept 13 ― CGS-CIMB expects more information on the structure, cost, development, and timeline of the Kuala Lumpur-Singapore High-Speed Rail (HSR) project after the Request For Information process concludes on November 15, 2023...
“At a later stage (Phase 2), the HSR may also extend to Bangkok. In terms of land acquisition, Sections 4 and 8 of the Land Acquisition Act 1960 (Act 486) provide that the state may acquire land that is deemed beneficial to the economic development of Malaysia,” CGS-CIMB said.
It expects the construction and material sector as a whole to benefit from the HSR revival.
CGS-CIMB also sees YTL Corporation Bhd, Malayan Cement Bhd (MCement) and HSS Engineers Bhd as top beneficiaries.
“YTL could be a front-runner given it was the original HSR promoter in 2008-09 and was appointed project delivery partner for the HSR southern section in 2018.
“Its experience in running Express Rail Link Sdn Bhd and the construction of the Gemas-JB double tracking and its cement arm MCement provides synergistic benefits,” it noted. ― Bernama
Don't really think Berjaya is competent to deliver HSR, beside Vincent Tan is just an opportunists with mainly using politic strength. My guess is they (everyone) will be given maybe some real estate development along with HSR project so that there enough development fund and most probably China CRRC do the actual work on HSR
Home Shortlist of HSR frontrunners just market sensing, parties to start on clean slate — CGS-CIMB Shortlist of HSR frontrunners just market sensing, parties to start on clean slate — CGS-CIMB By Anis Hazim / theedgemalaysia.com 13 Sep 2023, 02:18 pm main news image KUALA LUMPUR (Sept 13): The shortlisting of companies prior to the sale of the request for information (RFI) documents for the revived Kuala Lumpur-Singapore high-speed rail (HSR) project was just a market sensing exercise and "all parties now start on a clean slate", said CGS-CIMB.
The five companies that were believed to have been shortlisted include YTL Corp, MMC Corp Bhd, Malaysian Resources Corp Bhd (MRCB), WCT Holdings Bhd and Berjaya Land Bhd (BLand), said the research house in a note on Wednesday.
So far, almost 30 firms have submitted a request to purchase the RFI documents, while the project will be via a design-finance-build-operate transfer (DFBOT) model with the asset to be handed over after the concession period.
These were some of the key takeaways from a luncheon CGS-CIMB had hosted for clients and key management of MyHSR Corp Sdn Bhd, which is responsible for the development and implementation of the proposed HSR.
As the project is currently in the RFI stage, CGS-CIMB said that several details such as the structure of the HSR, potential cost, land acquisition, transit-oriented development (TOD) at its stations and timeline, still remain unanswered.
“In our view, the key is obtaining the buy-in from Singapore and resolving issues in the past, such as the AssetCo structure and linking the terminus of the HSR in KL to the ERL,” it said.
However, Prime Minister Datuk Seri Anwar Ibrahim recently quoted saying that the Minister of Transport will engage with Singapore after the government decides the way forward for the project subsequent to the completion of the RFI.
CGS-CIMB maintained its “overweight” stance to the construction and materials sector, anticipating a potential rollout of larger-scale projects stemming from the HSR.
The research house said that MyHSR Corp also touched on potential overlap of the HSR alignment with the Gemas-Johor Bahru (JB) double-tracking rail and pointed out that the HSR will serve different corridors and target different customers.
“The HSR will be more for business travellers who value time while the medium-speed double-tracking line caters to the more price-conscious. At a later stage (Phase 2), the HSR may also extend to Bangkok,” it said.
In terms of land acquisition, CGS-CIMB noted that the state (Johor) may also acquire land which is deemed beneficial to the economic development of Malaysia.
CGS-CIMB has named YTL Corp Bhd and its 78.6%-owned subsidiary Malayan Cement Bhd (MCement) and HSS Engineers Bhd as the top beneficiaries from the HSR’s revival, according to a note on Wednesday (Sept 13).
“YTL could be a front-runner given it was the original HSR promoter in 2008-2009 and was in 2018 appointed as project delivery partner (PDP) for HSR’s southern section, its experience in running the express rail link (ERL) and construction of Gemas-Johor Bahru double tracking, its cement arm MCement provides synergistic benefits,” it said.
CGS-CIMB has “add” calls for YTL Corp with a target price (TP) of RM1.91, MCement with a TP of RM5.55 and HSS Engineers with a TP of 80.8 sen.
Meanwhile, key downside risks would be political instability and rising raw material costs and labour.
HSR project is a mega project that must be done by a competent company with experience, responsibility, quality also capability to ensure not only the completion but the safety for long term of the user. Which company got experience to do this kind of project and be proven successful? And of course Kerajaan Madani looks back to the past record of achievements and sure YTL is the right choice again to do it ✌️
Significant discount for 1773 YTL on the Japan exchange. Not surprising, given bad reputation of bolehtipuland rubbing off there, where my Nomura shares are surging to greater & greater paper gains after just lately returning to the black after a very disheartening evaporation of thousands in paper gains due to the Archegos debacle in Mar '21. Generous, ample dividends make all the difference when enduring paper losses!
Looks like contrarian indicator/gambling addict has gone missing for awhile so maybe price can go up again. Y'all stay here in the comfort zone-cum-bolehtipuland mkt(which is half-dead & sleepwalking anyways) while I gradually shift any sales proceeds I can muster to where it all matters (where even 100 shrs has earned me $3400-6800 before) :🎌🗾🗻
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....
Pinky
3,367 posts
Posted by Pinky > 2023-09-13 08:55 | Report Abuse
Why almost every time speakup say something sure got ppl report him? 😮