4th ETP Update and Stock to Benefit

During the 4th Economic Transformation Programme (ETP) update recely, the PM unveiled a further 9 Entry Point Projects (EPP)s worth over RM2bn, bringing the total to date at 60 projects under 46 EPPs. To date, the projects will produce RM95bn in investments and increase GNI by RM137bn.

With the ETP and theupcoming General Election as its twin catalysts, OSK remain Overweight on the Malaysian market with our 1680 pts year end target intact. Favourite sectors remain Banks, Oil & Gas, Property and Construction.

The 4th EPPs announced include:

  • Tourism – A ferry, cruise and yacht passenger seaport and waterfront property development at the Marina Island Pangkor International Resort by Global SB, Bina Puri Properties SB and Marina Santuary Resort SB
  • O&G and Energy – An integrated O&G hub in Pulau Daat, Labuan for land based logistics and support services by RG Gas and Chemicals SB
  • O&G and Energy – Energy performance Management System project at 5 public hospitals to ensure efficient use of energy by Faber Group
  • O&G and Energy – A renewable energy park on remediated landfill in Pajam, Negeri Sembilan with biogas and solar power plants by Cypark Resources
  • Healthcare – Diagnostic Services Nexus teleradiology hub by General Electric and REDtone International
  • Agriculture – Incentivising smallholders to upscale paddy farming and intensify irrigation facilities by Muda Agriculture Development Authority (MADA) and Beras Nasional (Bernas)
  • Agricutlute – Cultivating 2 specialty fragrant rice varieties to reduce import of rice by Malaysian Agriculture Research and Development Institute (MARDI)
  • Palm Oil & Rubber – Expand palm oil downstream activities including producing bio-lubricants, green polymer additives and surfactants by Emery Oleochemicals Group
  • Electrical & Electronics – Develop a light emitting diode (LED) and solid state lighting (SSL) certification centre in Penang by QAV Technologies SB.

Stocks to benefit from EPP include Faber Group (TP: RM3.02), Cypark Resources (TP:RM2.98), Bernas and REDtone.

Source : OSK Research

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