Business

Published: Wednesday September 12, 2012 MYT 8:47:00 AM

CIMB Research keeps WCT, Mudajaya as Outperform


KUALA LUMPUR: CIMB Equities Research believes the pockets of underperformance in the results of the construction sector in the second quarter ended June 30, 2012 are not a big concern.

“The 22% year-on-year surge in the second quarter sector GDP should underpin progress billings. Expect margin recovery for some players gunning for specialist projects. Look at jobs beyond MRT for 2H12 catalysts,” it said on Wednesday.

CIMB Research said it was sticking to its expectation of an extended pre-election window for positive sector newsflow.

“Our estimates suggest up to RM14bil worth of jobs are outstanding for 2H12. As sector developments are likely to pick up pace, we maintain Trading Buy. We are not Overweight in view of election risks. WCT and Mudajaya remain our top picks,” said the research house.

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