hwang capital


Digital tax may impact parcel delivery logistics

KUCHING: Local authorities looking to implement a digital tax on eCommerce transactions may have indirect impact on logistic players in the form of parcel delivery volume growth. The research team at Affin Hwang Investment Bank Bhd (AffinHwang Capital) in a special report said Malaysia was not alone with conventional tax mechanisms falling behind the emerging […]

Bracing for digital tax in Budget 2019

KUCHING: Digital tax could possibly be announced in the upcoming Budget 2019, Affin Hwang Investment Bank Bhd (AffinHwang Capital) predicted in its budget preview. In its mid-term review of the 11th Malaysia Plan (MP) report, the government said it may be considering imposing a tax on online transactions involving e-commerce and sharing economy activities. “Digital […]

CPO production this year to peak in October, November

KUCHING: The plantation sector’s crude palm oil (CPO) production has been projected by analysts to likely peak in either October or November. From the research arm of Kenanga Investment Bank Bhd’s (Kenanga Research) channel checks with planters, it gathered that the adverse effect of El Nino and La Nina has largely subsided. “Therefore, production is […]

Analysts lower growth rate as Malaysia sees lowest trade surplus in 45 months

KUCHING: A sharp slowdown in Malaysia’s exports relative to its imports in August led to a narrow trade surplus balance to RM1.6 billion – the lowest surplus seen since October 2014. This led analysts to lower their growth expectations for the country. Kenanga Investment Bank Bhd (Kenanga Research) saw that exports growth fell by 0.3 […]

Construction sector outlook still challenging

PETALING JAYA: The outlook for the local construction sector remains challenging as the government is reviewing ongoing infrastructure projects to reduce costs by 20% to 33%, said Affin Hwang Capital.

Projects that could be affected include MRT2 and LRT3, Pan Borneo Highway and Gemas-Johor Baru double-tracking projects.

Affin Hwang Capital said MRT2 could see a 25% reduction in cost to RM24 billion from an initial estimate of RM32 billion. The MMC-Gamuda JV will be the most affected as it is the main contractor for the underground section and the project delivery partner (PDP) for the aboveground section of MRT2.

“Since the cost reductions will come from the reduction in the scope of works, we believe only the contract values will be reduced while profit margins should be preserved,” it said.

For LRT3, the construction cost could be slashed to RM9 billion to RM10 billion from an initial estimate of RM15-16 billion.

“The MRCB-George Kent JV will be most affected as the PDP for the project. We maintain our forecasts for MRCB as we believe we were conservative in our contract value assumption at RM9 billion for the LRT3 despite the previous escalation in cost. Other contractors affected include Gabungan AQRS Bhd, IJM Corp Bhd, Sunway Construction Group Bhd and WCT Holdings Bhd.”

Having said that, Affin Hwang Capital noted that there are opportunities in state government projects in Penang and Sarawak.

The Sarawak state government plans to complete the upgrading of the coastal highway and trunk roads at an estimated RM11 billion. Potential beneficiaries are Cahya Mata Sarawak Bhd and Hock Seng Lee Bhd.

Meanwhile, the Penang Transport Master Plan is pending approval by federal government authorities and public feedback collection is ongoing. The Pan Island Link 1 Highway and George Town-Bayan Lepas Airport LRT is estimated to cost RM16 billion. The Gamuda-led SRS Consortium is the PDP for the project.

Affin Hwang Capital is maintaining a “neutral” call on the construction sector due to the risk of order book reductions.

“However, we believe the concerns are reflected in current share prices. Our top buys are IJM Corp Bhd, Sunway Construction Group Bhd and HSS Engineers Bhd.”

Construction companies reported mixed results in Q2, with most seeing slower sales and progress billings due to general election uncertainties. However, construction earnings for most companies showed positive growth momentum.

Spate of fresh contracts a boost for Sapura Energy

KUCHING: Analysts give two thumbs up to Sapura Energy Bhd (Sapura Energy) being awarded four contracts – three new engineering and construction (E&C) contracts and one drilling extension contract – for a total of RM815 million. This led the stock to become the top most active yesterday with more than 190.62 million shares being traded at […]

Corporate Malaysia: Searching the horizon for answers

It has been a quarter of change for Malaysia in general, with a new government at the helm penning out new rules and policies in their aim to help the country reclaim the potential that it has. As Corporate Malaysia ponders what this means in terms of business operations, the uncertainty is reflected in the […]

Final lap of tax holiday spurs auto sales

KUCHING: The auto sector’s total industry Volume (TIV) saw a 27 per cent jump to 65,600 units in August 2018 as analysts believe consumers took advantage of the final month with zero-rated Goods and Services Tax (GST). The team at Affin Hwang Investment Bank Bhd (AffinHwang Capital) said with consumers taking advantage of cheaper cars […]

KLCI pares gains, stays up 0.28%


KUALA LUMPUR (Sept 20): The FBM KLCI pared some of its gains and was up 0.28% at midday break, while remaining above the crucial 1,800-point level, in line with the advance at most regional markets. At 12.30pm, the FBM KLCI was up 5.03 points to 1,805.74. The index had earlier risen to a high of 1,810.21. Gainers led losers by 333 to 330, while 1,220 counters traded unchanged. Volume was 1.07 billion shares, valued at RM834.74 million. Gainers included Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Heineken MalaysiaRead More

KLCI up 0.53%, stays above 1,800-level


KUALA LUMPUR (Sept 19): The FBM KLCI rose 0.53% at midday break today, tracking the broad-based uptrend at regional markets, while staying above the crucial 1,800-point level. At 12.30pm, the FBM KLCI was up 9.68 points to 1,802.62. Gainers led losers by 433 to 303, while 1,147 counters traded unchanged. Volume was 1.15 billion shares, valued at RM871.45 million. Top gainers included Hong Leong Bank Bhd, UMW Holdings Bhd, Public Bank Bhd, Hong Leong Financial Group Bhd, Top Glove Corp Bhd, Mi Equipment Holdings Bhd, Padini Holdings Bhd, Heineken MalaysiaRead More