• We are encouraged by the conviction shown during Prasarana’s MRT briefing for contractors yesterday. This reaffirms our view that execution of the project is likely to make further tracks in the next couple of months and fuel newsflow for the construction sector.
• The main takeaways from the briefing were 1) the prequalification process will start this month, and 2) the total estimated cost for the Sg. Buloh-Kajang (SBK) MRT line is RM20bn, higher than our estimate. This is good news for contractors. We maintain our OVERWEIGHT stance on the construction sector and continue to expect Gamuda and MRCB to be among the early winners. Other contractors should also benefit from the remaining RM10bn+ worth of jobs for the entire MRT project.
• The main takeaways from the briefing were 1) the prequalification process will start this month, and 2) the total estimated cost for the Sg. Buloh-Kajang (SBK) MRT line is RM20bn, higher than our estimate. This is good news for contractors. We maintain our OVERWEIGHT stance on the construction sector and continue to expect Gamuda and MRCB to be among the early winners. Other contractors should also benefit from the remaining RM10bn+ worth of jobs for the entire MRT project.
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