PublicInvest: TRC good track record will help it win highway jobs
U Chen Hock premier customers as those with RM200,000 and beyond in asset under management. KUALA LUMPUR: TRC Synergy Bhd should be one of the beneficiaries of the impending Pan Borneo highway jobs due to its track record in Sarawak for over a decade, said a research house.
Public Investment Bank Bhd (PublicInvest) said the management earlier confirmed that the company has been shortlisted for the Pan-Borneo highway projects, with each package valued at between RM1.4 billion and RM1.5 billion.
“We believe that with the group’s track record in Sarawak for the last 16 years, it stands a good chance to win a package which could see the year-to-date jobs of RM500 million potentially hitting RM1 billion this year,” said the firm in its note.
It added the Pan Borneo job win should see the stock being re-rated in the near term.
The value of the Pan Borneo jobs, expected to be dished out in the next round of project awards, is estimated at RM10 billion, out of the RM16 billion cost of highway development in Sarawak.
Three jobs have already been awarded to, among others, Hock Seng Lee Bhd-Dhaya Maju Infrastructure (Asia) Sdn Bhd consortium and Zecon Bhd-Kimlun Corp Bhd joint venture.
Recent news indicated that eight major work packages worth up to RM10 billion had been finalised and would be awarded by this month.
“Existing winners of Pan Borneo jobs will unlikely be given another package but can probably participate as sub-contractors,” said PublicInvest.
The firm also upgraded the stock from “neutral” to “buy”, with an unchanged target price of 49 sen, pegged at price earnings ratio multiple of cumulative 10 times.
“We believe the recent price correction offers a good entry point and upgraded the stock rating with the expectations of the group clinching a Pan Borneo job,” said PublicInvest.
RHB Banking Group Bhd aims to grow its RHB Premier customer base by 30 per cent by the end of this year.
“At the moment, only two per cent of our 3.9 million customers are from the affluent segment,” said executive director and head of group retail banking U Chen Hock at the launch of new RHB Premier service offerings, here, yesterday.
The bank defines affluent customers as those with at least RM100,000 in asset under management