KUALA LUMPUR (March 10): Hong Leong IB Research has picked Gamuda Bhd, IJM Corporation Bhd, Malaysian Resources Corporation Bhd and Tambun Indah Land Bhd as its top stocks to ride on the proposed RM27 billion Penang Transport Master Plan (PTMP).
In a note Tuesday, the research house said the PTMP was to solve Penang’s transport woes.
It said the two main components of the PTMP were roads (RM10 billion) and public transportation (RM16 billion).
It said the request for the proposal (RFP) for the project delivery partner (PDP) role closed on Feb 16, with 6 bidders having submitted their proposal.
“Key sector beneficiaries are construction (more contracts) and property (enhanced property and land value).
“Our stock picks to ride on the PTMP are Gamuda, IJM, MRCB and Tambun Indah,” it said.
On the impact on the construction sector, HLIB said PTMP would generate RM14 billion-RM21 billion worth of works for the PDP to undertake.
It said the various work packages would be tendered out to contractors by the PDP.
“There should also be subcontracts dished out by the main contractors. Finally, the development of Middle Bankwill provide a new lease of contract flows post PTMP,” it said.
Meanwhile, for the property sector, HLIB said the Klang Valley experience had shown how property values were enhanced with better connectivity (roads, LRT, MRT).
“We expect the impact to be similar for Penang with the PTMP, if not better, given its more holistic approach.
“Enhanced connectivity between the island and mainland should also narrow the price gap differential,” it said.
Source:
http://www.theedgemarkets.com/en/article/gamuda-ijm-mrcb-tilb-ride-penang-transport-master-plan-says-hlib