Source: The Edge
Hong Leong IB Researh has maintained its “Overweight” rating on the construction sector and said 2016 was already a record year for job flows.
In a note today, the research house said the cut in development expenditure during the Budget recalibration was mainly for non-infrastructure projects.
It said recovery in oil prices enables the government to unwind spending cuts.
HLIB Research said construction GDP of 10.2% for 2016 to outperform overall GDP of 4.2%.
It said domestic contract awards of RM38 billion in 1H16 has already surpassed previous full year high of RM28 billion (2012).
“Major contracts for 2H16 include MRT2, PBH, DASH, SUKE and RT3.
“5 major catalytic developments within Klang Valley with GDV more than RM200 billion to support building jobs.
“Stay Overweight as 2016 is a record year for job flows. Top picks: Gamuda Bhd, WCT Holdings Bhd and Mitrajaya Holdings Bhd,” it said.