Shark Trading

SunCon announced that it has been awarded two piling contracts with combined value of RM86.4m. The awards consist of piling jobs for LRT3 GS10 package and proposed TOD development at Putrajaya. Both contracts are expected to be completed in 2020. YTD job win stands at RM867.7m and outstanding orderbook currently stands at RM6.1bn which translates to 2.7x cover on FY18 revenue. Maintain forecast. Maintain HOLD rating with unchanged TP of RM1.81 derived from 16.5x P/E multiple on FY19 earnings.

NEWSBREAK
2 piling contracts. SunCon announced that it has been awarded two piling contracts with combined value of RM86.4m. The awards consist of: (i) bored pile works for LRT3 Package GS10 from Bandar Utama to Johan Setia and is expected to be completed on 24 March 2020 and (ii) earthwork, piling and associated works for the proposed transit oriented development at Plot 7MD7, Precinct 7, Putrajaya and is expected to be completed on 24 July 2020.

HLIB’s VIEW
Adding on more. This is the second and third job win of the year which brings the YTD sum to RM867.7m. Total outstanding orderbook currently stands at c.RM6.1bn which translates to 2.7x cover on FY18 revenue. Looking ahead, we expect more jobs to come from its parent-co Sunway going forward due to reduction in government spending on public infrastructure projects and continued slowdown of property market which results in less building jobs from external developers.

Exploring foreign ground. Given the slowdown of domestic construction industry, SunCon is actively exploring for regional opportunities particularly in India and ASEAN region. The company will collaborate with foreign partners in contract bidding to take advantage of local expertise.

Forecast. Maintained as YTD job win is still within our FY19 orderbook replenishment target of RM1.5bn.

Maintain HOLD, TP: RM1.81. Maintain HOLD with unchanged TP of RM1.81, based on an unchanged 16.5x PE multiple tagged to FY19 earnings. While we like SunCon as a well-managed contractor, we reckon that valuations are fair at current levels.

Source: Hong Leong Investment Bank Research - 21 Mar 2019

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7 things I learned from the 2019 Wellcall AGM Over the past 12 years, Wellcall has shown a notable financial track record with an average ROE of 23.3%. I attended AGM to learn more about the company.

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https://www.thestar.com.my/business/business-news/2019/03/19/dayang-snaps-rally-after-downgrade-short-selling-suspended/

Dayang snaps rally after downgrade, short selling suspended - Business News | The Star Online KUALA LUMPUR: Dayang Enterprise's recent rally to a high of RM1.74 hit a speed bump on Tuesday after Hong Leong Investment Research's downgrade saw it skidding to a low of RM1.36.

SHAH ALAM: Metronic Global Bhd, a total building management engineering solutions provider, aims for US$1 billion worth of projects across Malaysia, Europe, the United States, the Middle-East and Southeast Asia in the next three years.

Executive director and chief executive officer Brian Hoo Wai Keong said their aim is not too far-fetched.

“US$1 billion worth of projects is less than one per cent of global investments in smart city technologies, which is expected to rise to US$135 billion by 2021,” he told reporters at a press conference here today.

He said the company is in the midst of finalising tenders for several potential engineering projects worth up to RM300 million in Malaysia and across the region.

He said those projects include the KL Convention Centre, Melawati Mall, Mass Rapid Transit Sungai Buloh – Kajang Line, KL Sentral, Sunway Velocity Hotel, and the RADIA Bukit Jelutong mixed development.

Meanwhile, its unit Metronic Engineering Sdn Bhd recently inked a memorandum of understanding with Zhuhai Singyes New Materials Technology Co Ltd and stands to gain from this collaboration in smart city technology solutions.

“It would also connect infrastructures with Internet of Things and 5G capabilities, to support the 11th Malaysia Plan’s Smart City Initiatives, such as Greater Kuala Lumpur, Smart Selangor and Putrajaya Smart City, coupled with other local councils, township developments, community parks and integrated government departments, just to name a few,” he said.

Zhuhai Singyes, a subsidiary of China Singyes New Materials Holdings Ltd, has been listed on the Hong Kong Stock Exchange since 2017.

The group, founded in 1995, is a specialised smart city solutions provider with green building technology, renewable/solar energy solutions and fully integrated ecological agricultural products, and has an export, manufacturing and research and development base in Zhuhai, Guangdong Province, China.

“Smart city technology solutions from Singyes such as smart light-adjusting film/LED/glass, sensor networks, advanced composites lighting/CCTV systems with infrastructure integrated, renewable energy solar solutions and 5G capabilities, allow for a safe and healthy smart living environment, which bodes well for Malaysia’s smart city initiatives across the country,” said Hoo.

Singyes’ renowned buildings include Shanghai Yaohan, Shanghai Le Meridien Hotel, Dalian Hekou Station’s railway platforms, Suzhou Nikko Hotel, The Langham Hotel (Hefei), W Hotel (Suzhou), Zhuhai Yuhai Global Financial Centre, Suzhou Sun Wu Cultural Park, One Shenzhen Bay, Foshan Guangfa Bank, Guangzhou Grandplaza, and Cadillac China 4S head office.

Metronic, established in 1984, had registered revenue of RM43 million for the financial period ended 2018.

-- Bernama