We are of the view that the LRT extension job could be awarded soon, possibly by year end. We have identified several locations where site clearing is now in progress. Our channel checks indicate that there will only be 2 main packages for civil works collectively worth RM2bn.
As such, we expect the momentum of positive news within the sector to accelerate in the coming months and rerate our valuations upwards. Maintain OVERWEIGHT on construction.
Below are the target price for construction sector.