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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.
| Stock | Price (RM) | Target (RM) | Rating |
|---|---|---|---|
| AZRB | 1.01 | 1.51 | Buy |
| Gamuda | 3.80 | 4.31 | Buy |
| HSL | 1.84 | 1.92 | Buy |
| IJM | 5.53 | 5.20 | Neutral |
| Mudajaya | 4.19 | 7.22 | Buy |
| MRCB | 2.19 | 2.05 | Neutral |
| NAIM | 3.68 | 5.10 | Buy |
| Sunway | 2.06 | 2.52 | Buy |
| WCT | 3.05 | 3.66 | Buy |
Source : OSK Research
Related posts:
- Stock Picks – Construction Sector – January 2011
- Stock Picks – Construction Sector – March 2011
- Stock Picks – Construction Sector – July 2010
- OSK Construction Sector Stock Picks, Jan 2012
- Stock Picks – Construction Sector – October 2010
- OSK Construction Sector Stock Picks, Jul 2011
- Stock Picks – Property Sector – November 2010
- Stock Picks – Automotive Sector – November 2010
- Stock Picks – Steel Sector – June 2010
- Stock Picks – Plantation Sector – December 2010
