[%VPNl%]
Research by HLIB
Buy – TP RM0.60

“Below par start"

TRC’s 1QFY24 core PATAMI of RM147k was below expectations. Negative deviation came from sluggish construction segment. Unbilled orderbook is decent at RM850m (1.8x cover). With infrastructure projects expected to materialise in 2024, TRC could be a beneficiary of this healthier environment. Projects we believe TRC will participate in are LRT, MRT3, remaining KUTS packages, road projects in East Malaysia and airport jobs. Meanwhile its property segment could stay soft until Phase 2 Ara is launched in 1Q25. No change to forecasts. Maintain BUY with unchanged SOP-driven TP of RM0.60. Key appeal remains its traded share price at 32% discount to net cash per share of RM0.65.

Analyst:
Edwin Woo, CFA
[%jJen%]

$KLSE-TRC
Research by HLIB
Buy – TP RM0.60

“Below par start"

TRC’s 1QFY24 core PATAMI of RM147k was below expectations. Negative deviation came from sluggish construction segment. Unbilled orderbook is decent at RM850m (1.8x cover). With infrastructure projects expected to materialise in 2024, TRC could be a beneficiary of this healthier environment. Projects we believe TRC will participate in are LRT, MRT3, remaining KUTS packages, road projects in East Malaysia and airport jobs. Meanwhile its property segment could stay soft until Phase 2 Ara is launched in 1Q25. No change to forecasts. Maintain BUY with unchanged SOP-driven TP of RM0.60. Key appeal remains its traded share price at 32% discount to net cash per share of RM0.65.

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