Sunway, Muhibbah Engineering, MTD ACPI and TRC Synergy among winners of four additional packages to contruct Sg Buloh - Kajang MRT line worth RM 3.22 billion

(SUNWAY opening stock price today (9.5.2012) was RM 2.30) 

(MUHIBAH opening stock price today (9.5.2012) was RM 1.29) 

(TRC opening stock price today (9.5.2012) was 72.5 sen) 

(MTDACPI opening stock price today (9.5.2012) was 38 sen)

Share prices of MTD ACPI Engineering Bhd, Sunway Bhd and TRC Synergy Bhd advanced at midday on Wednesday after their related companies were awarded part of the Sg Buloh - Kajang (SBK) MRT Line.

The Mass Rapid Transit Corporation (MRT Corp) awarded four more packages for the construction of the Sg Buloh - Kajang (SBK) MRT Line worth RM3.22bil.

MRT Corp announced that four packages were awarded to Syarikat Muhibbah Perniagaan & Pembinaan Sdn Bhd, Sunway Construction Sdn Bhd, MTD Construction Sdn Bhd and Trans Resources Corporation Sdn Bhd.

MRT Corp had said the awarding of the packages followed the conclusion of the One Stop Procurement Committee (OSPC) meeting chaired by Prime Minister Datuk Seri Mohd Najib Tun Abdul Razak.

Syarikat Muhibbah was awarded Package V1, which is a bumiputra-exclusive package, covers work between the Sg Buloh and Kota Damansara stations of the SBK alignment.

Sunway Construction was awarded Package V4 for works between Section 17 in Petaling Jaya and the Semantan Portal, where the alignment will continue underground.

MTD Construction Sdn Bhd won Package V7 for works between Bandar Tun Hussein Onn and Taman Mesra in Cheras.

Trans Resources Corporation was awarded the final package for works related to the Sg Buloh Depot.

Source: www.thestar.com.my

TRC Synergy going all-out for work packages for the Sungai Buloh-Kajang (SBK) Line of Klang Valley MRT project, fair value 85 sen - RHB Research

RHB Research Institute has reduced the fair value of TRC Synergy Bhd by 12% from 96 sen to 85 sen but is maintaining its Outperform on the stock.

It said on Monday the company is going all-out for work packages for the Sungai Buloh-Kajang (SBK) Line of Klang Valley MRT project but will stick with its stance of not unduly compromising on margins.

"In the immediate term, TRC does not expect significant expansion in construction margins as construction earnings will predominantly be underpinned by two key contracts, that is LRT line extension and Brunei airport that command relatively lower margins," it said.

RHB Research said on a brighter note, the recent soft launch of TRC's gated and guarded property project called Ukay Tropika in the Ulu Klang area with a gross development value of RM90mil was a runaway success.

"FY12-FY14 net profit forecasts cut by 8-14%, having reflected lower blended construction EBIT margins of 6.6%-7.4% (8.6%-8.8% previously), partially cushioned by contribution from Ukay Tropika," it said.

Source: www.thestar.com.my