THE BUZZ
MRT Corp has awarded 4 work packages - comprising 3 viaduct
packages and 1 depot work package - worth RM3.22bn involving the construction
of the Sungai Buloh-Kajang (SBK) My Rapid Transit (MRT) line.
OUR TAKE
More details on the packages. According to MRT Corp’s
official statement, the viaduct packages
- codenamed v1 (Sungai Buloh–Kota Damansara), v4 (Section 17, PJSemantan
portal), and v7 (Bandar Tun Hussein Onn–Taman Mesra) - have been awarded to Syarikat Muhibah
Perniagaan dan Pembinaan SB, Sunway
(BUY, FV: RM3.31), and MTD Capital (NR)
respectively. This means that five out of the eight viaduct packages for the entire line
have been dished out, with IJM (TRADING BUY; FV: RM6.55) and AZRB (NEUTRAL, FV:
RM0.91) having clinched the other 2 packages previously. Meanwhile, the Sungai
Buloh depot work package worth RM459m was awarded to TRC Synergy (TRADING BUY,
FV: RM0.84).
Within expectations.
There are a total of 27 work packages
involving civil and infrastructure
works as well as 11 packages of non-civil system works on the entire SBK line.
Earlier, we had expected three contracts for the elevated portion to be awarded
as early as April. Although the
awards were slightly delayed, we deem this largely within
expectations, in line with MMC’s previous guidance that 70%-80% of all the
works are expected to be awarded by July this year.
No surprise on
the winners. This announcement means
that two out of the three names that
we alluded to previously, i.e. MRCB (TRADING BUY, FV: RM2.50), Sunway, and
TRC Synergy, have secured some works
relating to the SBK line so far. The
RM459m job for TRC turned out to be higher than our last guidance for
RM200mRM300m, which we see as
a positive surprise since it boosts the company’s FY12 orderbook replenishment to
RM495m vis-à-vis our full-year
replenishment target of RM500m. No changes to our earnings model for the time
being, with our FV of RM0.84 maintained. Reiterate TRADING BUY on TRC.
OVERWEIGHT. We
are positive on the progressive award of MRT contracts and expect to the news
flow to surge over the next few months
as the momentum picks up going into 3Q12. Hence, we are maintaining our OVERWEIGHT call on the
sector, with Gamuda (BUY, FV: RM4.57) and KimLun (BUY, FV: RM2.37) as our Top
Buys.
Source: OSK188
No comments:
Post a Comment