OSK Construction Sector Stock Picks, Feb 2012



As the much anticipated 13th general election draws near, OSK see the Government dishing out more contracts to create a “feel good” climate in the run-up to the polls.

News relating to mega projects such as the KL MRT, WCE, EDT and potentially SCORE, should gain traction and hence present investors – who are increasingly becoming more upbeat – with trading opportunities aplenty.

As such, OSK upgrade our sector call from Neutral to OVERWEIGHT as the rush of positive news in the next few months is likely to fire up the sector to new highs this year.

Below are the target price, market capitalization and rating for selected stocks in construction sector.

Stock Price (RM) Target (RM) Market Cap (RMmil) Rating
AZRB 0.895 1.02 247.7 Tr Buy
Gamuda 3.90 4.46 8,070.3 Buy
HSL 1.49 1.69 868.2 Buy
IJM 6.00 6.68 8,289.7 Tr Buy
Kim Lun 1.59 2.15 364.1 Buy
Mudajaya 2.84 4.08 1,557.2 Buy
Naim 1.93 2.55 482.5 Tr Buy
TRC 0.775 0.85 364.5 Tr Buy


Source : OSK Research


Leave a Comment

  • mike 19th February, 2012, 2:34 pm

    I am bit bearish on economy right now but your picks are really valuable,,good for day traders

    Reply