CONSTRUCTION
[%xGEw%] [%fCTF%] [%mfYC%] [%MKih%] [%pqAJ%]
Research by HLIB
Overweight (Maintain) 

“Solid start”

1Q24 domestic contract awards totalled RM6.96bn (45% QoQ, -3% YoY). Contracts again were dominated by private sector which saw robust flows notably from commercial & residential projects, while data centre space contributed too. Going forward, we expect contract awards from several big ticket infrastructure projects to drive jobs higher in 2024. We maintain sector OVERWEIGHT keeping to our thesis of contract awards growth driven by mega infra projects & supported by robust private sector job flows. Sector valuations remain undemanding against this positive backdrop. Top picks are Gamuda (BUY: TP: RM6.11) and SunCon (BUY; TP: RM3.20). 

Analyst(s):
Edwin Woo, CFA 
[%yRCU%]

CONSTRUCTION
$KLSE-GAMUDA $KLSE-SUNCON $KLSE-IJM $KLSE-KIMLUN $KLSE-TRC
Research by HLIB
Overweight (Maintain) 

“Solid start”

1Q24 domestic contract awards totalled RM6.96bn (45% QoQ, -3% YoY). Contracts again were dominated by private sector which saw robust flows notably from commercial & residential projects, while data centre space contributed too. Going forward, we expect contract awards from several big ticket infrastructure projects to drive jobs higher in 2024. We maintain sector OVERWEIGHT keeping to our thesis of contract awards growth driven by mega infra projects & supported by robust private sector job flows. Sector valuations remain undemanding against this positive backdrop. Top picks are Gamuda (BUY: TP: RM6.11) and SunCon (BUY; TP: RM3.20). 

Analyst(s):
Edwin Woo, CFA 
ckwoo@hlib.hongleong.com.my

$KIMLUN / 5171 (KIMLUN CORPORATION BERHAD)

$SUNCON / 5263 (SUNWAY CONSTRUCTION GROUP BERHAD)