KUALA LUMPUR: TRC Synergy Bhd is expected to sizzle this year with the progress on the RM950 million project of Kelana LRT extension regaining momentum, an investment bank said.
OSK Investment Bank said TRC is a strong contender for the Sungai Buloh-Kajang (SBK) line of the MRT (mass rapid transit) project, given its track record in the Kelana LRT extension.
OSK pointed that TRC was the only contractor that was prequalified for all packages of the RM12 billion SBK line for the KL MRT's open and Bumiputera portions.
"Having purchased all the necessary machinery for the Kelana extension job, we believe it is strong contender for the SBK line's elevated works, especially the Bumiputera portion," it said.
TRC had mobilised the required machinery for the job and will accelerate works to make up for lost time, it added.
The first two packages (V5 and V6), which the company is eyeing, should be awarded in early part of this year.
In its research report to investors, the investment bank said, currently, TRC managed to add RM485 million worth of new projects to replenish its order book.
"This is pretty much in line with our full-year target of RM500 million," OSK said, noting that one notable award was the Brunei Airport upgrade, worth RM318 million, which is expected to drive TRC's financial year 2012 and 2013 earnings.
OSK believes that TRC's earnings are at an inflection point and projects a three-year compounded annual growth rate (CAGR) of 37 per cent.
"We feel that TRC offers an attractive exposure to the KL MRT play," said the firm, which has tagged a "buy" on TRC.
OSK Investment Bank said TRC is a strong contender for the Sungai Buloh-Kajang (SBK) line of the MRT (mass rapid transit) project, given its track record in the Kelana LRT extension.
OSK pointed that TRC was the only contractor that was prequalified for all packages of the RM12 billion SBK line for the KL MRT's open and Bumiputera portions.
"Having purchased all the necessary machinery for the Kelana extension job, we believe it is strong contender for the SBK line's elevated works, especially the Bumiputera portion," it said.
TRC had mobilised the required machinery for the job and will accelerate works to make up for lost time, it added.
The first two packages (V5 and V6), which the company is eyeing, should be awarded in early part of this year.
In its research report to investors, the investment bank said, currently, TRC managed to add RM485 million worth of new projects to replenish its order book.
"This is pretty much in line with our full-year target of RM500 million," OSK said, noting that one notable award was the Brunei Airport upgrade, worth RM318 million, which is expected to drive TRC's financial year 2012 and 2013 earnings.
OSK believes that TRC's earnings are at an inflection point and projects a three-year compounded annual growth rate (CAGR) of 37 per cent.
"We feel that TRC offers an attractive exposure to the KL MRT play," said the firm, which has tagged a "buy" on TRC.
