Analysts maintain positive stance on AQRS on fresh interest

KUALA LUMPUR: Analysts have maintained their positive stance on Gabungan AQRS Bhd (AQRS), on the back of fresh interest in the the group and as a beneficiary of buoyant activities in the Kuantan region.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), the flurry of news for East Coast Railway Link (ECRL) injected fresh interest for AQRS prompting the share price to surge 8.8 per cent year-to-date (YTD).

MIDF Research noted that ECRL is a boon for AQRS’s earnings for the financial year ended 2018-19 (FYE18FYE19) due to the group’s extensive involvement in the development of Kota Sultan Ahmad Shah and Pusat Pentadbiran Sultan Ahmad Shah (PPSAS).

“Pace is picking from the appointment of AECOM to provide site supervision services for stations, viaducts and depots by China Communication Construction Co Ltd in January 9, 2018.

“It is a good move welcoming progressive steps towards the start of ECRL’s construction,” the research arm said.

MIDF Research highlighted that in relations to that, buoyant industrial activities within Kuantan-Gambang-Kerteh region would see the need for housing and other transit oriented development (TOD).

It further highlighted that in view of the packages awarded in November 2017, the size of projects would be around RM200 to RM250 million for TOD based projects and civil works relating to construction of stations and basic infrastructure within the Kota SAS vicinity.