KUALA LUMPUR (Jan 16): AffinHwang Capital Research has maintained its “Overweight” rating on the Malaysian construction sector and said prospects for order replenishment/growth remain good.

In a note today, the research house said it expects about RM96 billion worth of infrastructure contracts to be awarded in 2017-2018.

It said this will sustain the infrastructure contract awards that surged 153% year-on-year (y-o-y) to RM47.5 billion in 9M16.

“Record order books secured provide good earnings visibility and will drive sector core EPS growth of 15% y-o-y in 2017E.

“Our top sector Buys are Sunway Construction Group Bhd (Suncon), WCT Holdings Bhd, Gamuda Bhd and Gabungan AQRS Bhd,” it said.