【出版时间及名称】：2010年3月马来西亚基建行业研究报告
        【作者】：AmResearch Sdn Bhd
        【文件格式】：pdf
        【页数】：40
        【目录或简介】：
Mega foreign investments to prod interest in Sarawak. In this report, we highlight Sarawak’s deep development potential as a
cornerstone theme for the construction sector. Recent corporate manoeuvres have sparked interest in Sarawak plays - 1Malaysia
Development Bhd recently signed a landmark deal with State Grid Corp of China to jointly invest US$11bil in Sarawak. Such a move
may be a prelude to stronger contract flows in Sarawak ahead of its state elections. This move would likely spin-off job opportunities
for top Sarawakian contractors – Naim Holdings Bhd (Naim), Hock Seng Lee Bhd (HSL) and Cahya Mata Sarawak Bhd (CMSB)
– as well as select steel fabricators – KKB Engineering Bhd (KKB).
• Massive basic infrastructure required to support SCORE’s growth. Sarawak Corridor of Renewable Energy (SCORE) is one of
Malaysia’s five growth corridors with total targeted investments of RM334bil. More importantly, allocation for basic infrastructure is
crucial to support these huge investments – with RM65bil being budgeted under Phase 1 of SCORE’s implementation (2008-2015).
Tenders for the Murum access roads (five packages) will now be dished out simultaneously. Key areas of spending are:
(1) At least RM4bil-RM5bil worth of road jobs up for grabs: This includes two major access roads under SCORE – Murum
(RM800mil) and Nanga-Merit (RM1.4bil).
(2) Water infrastructure. Naim is working hard to convert Letter of Intents for remaining packages of the Kuching flood
mitigation project (RM1.1bil) into actual awards. Likewise, HSL is a leading candidate for balance of works worth RM2bil –
under the Kuching sewerage project where it is already involved in initial works for Phase 1 with Nishimatsu of Japan.
(3) Other notable jobs. We expect more concrete news flow on the status of the Mukah Airport extension worth RM600mil in the
coming months. Also on the cards is a proposed Tg.Manis port expansion worth RM350mil - with HSL a potential beneficiary
due to its prior track record of completed projects in the area (e.g. RM300mil Tg.Manis deep sea fishing port). Naim is in
advanced negotiations for a proposed RM167mil Bengoh dam resettlement – a decision could be made by 2Q10.
• Re-acceleration of hydro dam projects on the cards. A major draw card of SCORE is the ability to provide cheap power to heavy
industries – with a portion to be supplied to peninsular Malaysia. So far, only two hydro dams are being built – Bakun: 2400MW,
Murum: 944MW – against a total hydro potential of 20,000MW (2020 target: 10,000MW). But with Sarawak’s own rising future
requirements, this may prod the state to ramp up rollout of five new hydro dams worth RM13bil to plug the gap. We do not discount a
consortium being formed between foreign and local contractors – possibly Loh & Loh Corp Bhd – in bidding for these jobs.
• Expanding, with added kickers from property. Select contractors are expanding ahead of stronger contract flows – (1) KKB:
doubling its steel fabrication capacity to 30,000mtpa by mid-2011; and (2) Dayang Enterprise Holdings Bhd’s acquisition of
Syarikat Borcos for RM132mil. On the property front, Naim is guiding for higher pre-sales of RM210mil in FY10F (FY09: RM122mil).
Spurred by good response from The Leaf (over 90% take-up rate since its launch last October), HSL is marking its second foray into
the high-end property market in Kuching with launch of LaPromenade (GDV=RM900mil) expected by end-4Q10.
• Top Sarawak picks – Naim and HSL. We re-initiate coverage on Naim with a BUY (FV = RM4.60/share). Naim is an excellent
Sarawak proxy for its demonstrated ability to secure new jobs – backed by solid contributions from its property and oil & gas arms.
We also like HSL’s exciting order book prospects due to its competitive positioning as Sarawak’s de-facto land reclamation specialist.
Average margins of both Sarawak companies are also higher at 13-%-18% versus less than 10% for Gamuda, IJM and WCT.