Construction-related stocks edge up

KUALA LUMPUR: CONSTRUCTION []-related stocks edged up in early trade on Wednesday, Sept 14 after HwangDBS Vickers Research said that the sector was on stronger footing than in 2008, and said it was insulated from the US/Europe woes.

At 9.22am, IJM Corp gained 13 sen to RM5.87, MRCB three sen to RM1.99, Gamuda one sen to RM2.91 while Lafarge Malayan Cement added 10 sen to RM6.98.

HwangDBS said the construction sector was domestic driven, fuelled by the ETP rollout.

'We compare the sector now to during the 2008 credit crunch, looking at: (i) new orders, (ii) earnings visibility, (iii) geographical exposure; (iv) balance sheet strength, and (v) valuations.

'Overall, we feel this domestic-oriented sector fuelled by the ETP will be less affected a US recession or Europe debt woes,' it said in a note Sept 14.

The research house said its analysis showed that earnings visibility was better now with the RM50 billion MRT project anchoring growth versus 2008/09 when the two stimulus packages benefited unlisted smaller contractors more.

It said its sector pick remains IJM, adding that Gamuda was at recession low.

MRCB and WCT are also large laggards, it said.

Maybank IB Research maintains Hold call on IJM Corp

KUALA LUMPUR: Maybank Investment Bank Bhd Research has maintained its Hold recommendation on IJM CORPORATION BHD [] at RM6.35 with unchanged target price of RM6.50.

It said the two toll concessions, given the go-ahead by the government last Friday, should positively boost IJM Corporation's CONSTRUCTION [] order book, which stands at approximately RM4.1 billion now.

'We estimate order book could easily double.

''The impact on valuations cannot however be assessed in the absence of further information,' it said in a note Monday, April 4.

IJM up in early trade

KUALA LUMPUR: IJM CORPORATION BHD [] shares advanced in early trade on Monday, April after its unit New Pantai Expressway Sdn Bhd (NPE) received the go-ahead from the Public Private Partnership Unit of the Prime Minister's Department for the proposed New Pantai elevated highway extension to Ampang-Kuala Lumpur.

At 9.45am, IJM Corp was up 10 sen to RM6.45.

Maybank Investment Bank Bhd Research has maintained its Hold recommendation on IJM Corp at RM6.35 with unchanged target price of RM6.50.

It said the two toll concessions, given the go-ahead by the government last Friday, should positively boost IJM Corp's CONSTRUCTION [] order book, which stands at approximately RM4.1 billion now.

'We estimate order book could easily double.

''The impact on valuations cannot however be assessed in the absence of further information,' it said in a note Monday, April 4.