KUALA LUMPUR (March 7): CIMB Research expects a strong project pipeline in the coming months and a gradual recovery in CONSTRUCTION [] margins.
In a note Wednesday, the research house said 4Q was seasonally a strong quarter for contractors but timing of jobs led to some underperformance in results.
“We expect a strong project pipeline in the coming months and a gradual recovery in construction margins.
“The results season also ended with optimism among contractors that project flows will intensify.
“This will be driven by the awards of the MRT SBK line and the potential award of the Gemas-JB double-tracking job. Maintain Trading Buy with IJM Corp and Gamuda as our top pick,” it said.
In a note Wednesday, the research house said 4Q was seasonally a strong quarter for contractors but timing of jobs led to some underperformance in results.
“We expect a strong project pipeline in the coming months and a gradual recovery in construction margins.
“The results season also ended with optimism among contractors that project flows will intensify.
“This will be driven by the awards of the MRT SBK line and the potential award of the Gemas-JB double-tracking job. Maintain Trading Buy with IJM Corp and Gamuda as our top pick,” it said.
