$KIMLUN / 5171 (KIMLUN CORPORATION BERHAD) and $KKB / 9466 (KKB ENGINEERING BERHAD) as potential beneficiaries of the developments of Kuching's Urban Transportation System Plan


*Excerpts taken from RHB Research Report*

As many know, recently the Sarawak Government had announced a second award of the next package of the Autonomous Rapid Transit (ART) system. This is significant as Sarawak gears up for major CAPEX to develop the state, which is fully funded by the state itself and not from federal. Trivia: 2024 is Sarawak's record high budget for development expenditure, for highways, buildings, infrastructure and so on, coming in at RM 9bil.

Briefly, the ART is divided into 3 lines, Blue, Red, and Green lines. The blue line package was awarded to a consortium containing $IBRACO / 5084 (IBRACO BERHAD) (remember the limit ups?). The red line was secured by unlisted companies. The Green line has yet to be awarded at this juncture.

Companies with track record in Sarawak infra had been shared before by @ricardomilos1021 here: https://cutt.ly/awJrqI3X so I would recommend giving it a read.

As discussed in @Jinnsern 's thread about KKB here: https://cutt.ly/lwJrqOFv , two potential beneficiaries are KKB and Kimlun. Not simply as a speculation on whether or not they will win the final package, but rather their track record of suppling necessary materials for works.

As you may know, Kimlun is one of the precast concrete suppliers, selling girders and they have supplied it to many highway projects before (including to Singapore). KKB, being a pipe supplier, will no doubt be able to supply some to the infra works as well. I think @RHBTradeSmartMY 's report on the developments is quite spot on highlighting these 2 companies as investible ideas.

I'm keenly following news on Sarawak as I think there is a good tailwind there.