KUALA LUMPUR, May 18 — Affin Hwang Capital has maintained its “overweight” call for the construction sector.
This follows the recent launch of the public display for the RM25 billion Klang Valley Mass Rapid Transit Line 2 (MRT2) and RM9 billion Light Rail Transit 3 (LRT 3).
The research firm said the move was positive for the sector, adding MMC Corp and Gamuda are key beneficiaries of the MRT2 project, with potential winners of the LRT3 venture in its opinion, being, George Kent, MRCB or Sunway.
“The launch reflects the government’s commitment to implement the projects in 2016, which will spur the construction sector growth,” it added.
Affin Hwang Capital, meanwhile, maintained a “neutral” rating on the property sector, saying the development of both lines will have a positive impact on property prices within the vicinity and also benefit developers with land bank close to it.
“In the near term, we remain cautious over the property sector as we expect demand to remain subdued in 2015, mainly due to more stringent credit approval.
“For exposure to the property sector, we like Sunway for its integrated real estate model as well as its extensive experience in the construction sector,” it added.
Construction works for the proposed 52.2 km MRT2 line is expected to commence in 2016 and be fully operational by 2022.
For the proposed 36 km LRT 3, the construction work is also expected to commence next year and targeted for completion in 2020. — Bernama
