KUALA LUMPUR (Jan 8): Hong Leong IB Research has maintained its “Overweight” rating on the construction sector and said development expenditure was targeted to increase strongly in 2015 (by 15% year-on-year).
In a note Thursday, the research said construction growth of 10% was set to outpace gross domestic product growth of 4.8% in 2015.
“Contract flows remain robust with 2014 at RM18 billion (up16% y-o-y).
“The Eleventh Malaysia Plan (11MP), to be unveiled in May, is an overlooked catalyst.
“Maintain Overweight, top picks: Gamuda Bhd and Mitrajaya Holdings Bhd,” it said.