|
| |
|
|
Maintain OVERWEIGHT. We believe that our RM18bn domestic jobs win target for 2011 could likely be breached should the various projects under the ETP kick off faster than expected. Given the likelihood of an early General Election this year, we expect the momentum of news flow within the sector to accelerate.
Our top sector pick is Gamuda for its MRT exposure, with its Vietnam property launches and resolution of the water assets consolidation as the wild card. For the small caps, we like Ahmad Zaki. In view of the state elections which must be held by May, we continue to like the Sarawak theme and highlight sector laggard Naim Holdings. Investors may also consider looking at Iskandar construction plays, with Kim Lun as key proxy.
Below are the target price for selected stocks in construction sector.
| Stock | Price (RM) | Target (RM) | Rating |
|---|---|---|---|
| AZRB | 1.13 | 1.55 | Buy |
| Gamuda | 3.94 | 4.78 | Buy |
| HSL | 1.78 | 2.32 | Buy |
| IJM | 6.28 | 6.60 | Neutral |
| Mudajaya | 4.33 | 6.83 | Buy |
| MRCB | 2.07 | 2.05 | Neutral |
| NAIM | 3.50 | 5.10 | Buy |
| Sunway | 2.31 | 2.60 | Buy |
| WCT | 3.20 | 3.66 | Buy |
Source : OSK Research
Related posts:
- Stock Picks – Construction Sector – March 2011
- OSK Construction Sector Stock Picks, Jul 2011
- OSK Construction Sector Stock Picks, Jan 2012
- Stock Picks – Construction Sector – November 2010
- Stock Picks – Construction Sector – October 2010
- Stock Picks – Construction Sector – July 2010
- Stock Picks – Oil & Gas Sector – January 2011
- Stock Picks – Media Sector – January 2011
- Stock Picks – Automotive Sector – January 2011
- OSK Steel Sector Stock Picks, Jul 2011
{ 1 comment… read it below or add one }
It’s a good time to invest in construction sector. Good to diversify your portfolio in this sector.