WITH the recent announcements of 52 high impact projects totalling RM62bil, analysts believe a re-acceleration of contract flows in Sawarak is imminient.This is especially due to the Sarawak state government’s increasing energy needs for its ambitious Sarawak Corridor of Renewable Energy (SCORE).
The inclusion of two massive aluminium smelters in SCORE worth RM18bil should help prod a faster roll-out of basic infrastructure required to support the region’s deep potential.
“Our top Sarawak pick is Naim Holdings,” said an AmResearch analyst.
Malaysian contractors will also get a kick from massive infrastructure projects that are required to support the proposed dam projects.
Last month, Naim, Cahya Mata Sarawak Bhd (CMS) and Bintulu Development Authority (BDA) formed a joint venture (JV) to develop the proposed Samalaju new township, which is estimated to cost at least RM1.5bil.
Located within SCORE, the project will comprise residential developments, schools, clinics, commercial centres and recreational facilities for about 50,000 people.
Naim has a 60% stake in the JV while CMS and BDA hold 30% and 10% respectively.
For its first quarter to March 31, Naim’s net profit reduced 13.26% to RM13.99mil while revenue increased 29.43% to RM123.35mil.
The stock is backed by a net tangible asset of RM2.66. – By Tee Lin Say
The comments above do not represent a recommendation to buy or sell.
- thestar.com.my
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