Malaysia Major Infrastructure Projects To Roll Out In 2H16

With roll out of major highway, MRT and LRT projects, we believe the total contract awards in 2016 could match the RM96bn recorded in 2015. We estimate the value of major infrastructure projects to roll out in 2H16 is about RM49bn, providing opportunities for the local construction companies to expand their order books.

Annual contract awards by government and private sector

Balance of contracts to be awarded in 2H16 (Total RMbn 48.8)

Project: Klang Valley MRT Line 2 (Sg Buloh-Selayang-Putrajaya)  Cost: RMbn 7.3
Potential listed co bidders: Gadang, Mudajaya, GAQRS, WCT

Project: Pan-Borneo Highway (Sarawak section) Cost: RMbn 12.8
Potential listed co bidders: Cahya Mata-Bina Puri, Gamuda-Naim, WCT-KKB End, Suncon-KTS, IJM

Project: LRT Line 3 (Bandar Utama-Shah Alam-Klang) Cost: RMbn 9.0
Potential listed co bidders: Suncon, IJM, Gamuda, Gadang, TRC

Project: Southern Double-Tracking Rail  Cost: RMbn 8.0
Potential listed co bidders: Gamuda, IJM, WCT, Fajar Baru

Project: West Coast Expressway  Cost: RMbn 2.2
Potential listed co bidders: IJM, WCT, WZ Satu

Project: Sungai Besi-Ulu Kelang Elevated Expressway (SUKE)  Cost: RMbn 5.3Potential listed co bidders: IJM, Suncon, WCT

Project: Damansara-Shah Alam Highway (DASH) Cost: RMbn4.2
Potential listed co bidders: IJM, Suncon, WCT

Valuations for Malaysian construction companies

source: Affin Hwang Capital Research

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