More contract awards from LRT project

OSK Research is optimistic the impending light rail transit (LRT) Package B contract, valued up to RM1.7 billion, will boost contract awards in the second half of the year.

It said the contract would be awarded by Syarikat Prasarana Negara Bhd (Prasarana) and would be divided into two channels, Kelana Line (valued at RM700 million) and Ampang line (between RM800 million and RM1 billion).

"We believe four companies namely TRC Synergy Bhd, Sunway Holdings, Bina Puri Holdings-Malaysian Resources Corporation Bhd (Bina Puri-MRCB) joint venture and WCT Bhd, may be the front-runners," it said in a research note today.

Among the potential winners, OSK rated both TRC and WCT as "buys" with a fair value of RM1 and RM3.69, respectively, while MRCB and Sunway were rated a "trading buy" with a fair value of RM2.58 and RM3.27, respectively.

OSK, however, did not rate Bina Puri.

The research house also maintained its "overweight" view on the construction sector, upbeat by the elevated portion of the RM12 billion mass rapid transit Sungai Buloh-Kajang contract, for which, tenders would be called in the near-term. -- Bernama

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