马来西亚股票分析报告

A recent research report from TA SECURITIES highlights a strong financial performance for the company, with 3MFY26 core earnings reaching RM223.1 million. This figure notably exceeded both TA SECURITIES’ forecast and consensus estimates by 15.7% and 16.0% respectively, positioning the company for continued robust performance in the upcoming quarters, consistent with historical trends.

Performance Review

Despite a 5.3% year-on-year (YoY) contraction in revenue, primarily attributed to softer contributions from both the construction (-0.9%) and property (-18.4%) segments, the company achieved an impressive 11.6% rise in core net profit. This growth was largely driven by improved margins from domestic construction projects and strong contributions from Vietnam’s Quick Turnaround Projects (QTPs), particularly Eaton Park, within the property segment. Consequently, the net margin saw a healthy improvement to 5.7% from 4.8% previously.

The dip in construction revenue reflected weaker progress billings from overseas projects, which decreased by 21.0%. This overseas decline was largely a timing issue, as over 70% of foreign projects are still in their early phases, and the Sydney Metro West-Western Tunneling Package is nearing completion. Quarter-on-quarter (QoQ) performance also saw a decline, with revenue and core net profit falling by 19.2% and 31.4% respectively. This was due to reduced property contributions and a slowdown in foreign construction activities, leading to a decline in EBIT margin from lower project margins in Australia and temporary lower margins from domestic property projects due to high sunk costs related to land acquisition. A first interim dividend of 5 sen per share was declared for the quarter, lower than the 10 sen declared in the prior corresponding period.

Future Outlook and Strategy

The company’s future earnings visibility remains strong, underpinned by a substantial total outstanding order book of approximately RM39 billion as of end-October 2025. This order book provides a solid 3.1x cover of its FY25 construction segment revenue, ensuring robust earnings for the next five years. Year-to-date in FY26, the company has secured RM4.0 billion worth of new contracts, including significant wins such as the Battery Energy Storage System for Goulburn River Solar Farm (RM383 million) and the Richmond Road Upgrade (RM465 million).

Management is confident in achieving its internal unbilled order book target of RM40-45 billion by end-CY25, anticipating strong new project wins from a robust tender pipeline, especially in Australia, which includes major infrastructure projects like the Marinus Link Stage I and Sydney Metro West stations. Furthermore, an ambitious internal target of RM50 billion unbilled order book by end-CY26 has been set, supported by active bidding for an estimated RM50 billion worth of new contracts across its key markets in Malaysia, Singapore, Taiwan, and Australia.

The property development segment also shows promise, with recorded sales of RM846 million in 1QFY26, a 33% YoY increase, achieving about 15% of its full-year sales target. Strong demand for Vietnam’s QTPs, such as Eaton Park, has been a key driver, with stronger sales anticipated in 2QFY26. Favourable market conditions in London also support the redevelopment plan for its 75 London Wall projects. Margin improvement in property development is expected in coming quarters, driven by higher-margin projects in Vietnam and Singapore, with the impact of lower-margin Malaysian projects gradually easing.

TA SECURITIES maintains a “Buy” recommendation on the stock, reaffirming its SOP-derived target price of RM6.58, which includes a 3% ESG premium, aligning with its 4-star ESG rating. The investment bank anticipates a meaningful earnings uplift as project execution accelerates and progresses into more advanced stages, further solidifying the company’s strong market position and ability to secure high-complexity infrastructure works.