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Lower interest rates and mgmt guidance/prospect in last qr - Therefore, with its existing order book and the positive outlook for new projects to be rolled out by the government, as well as the positive outlook for the residential subsector, the Group is expected to maintain a strong performance in FY2025.
will have a look at the details in the report and add accordingly, hk. and then monitor for upcoming budget 2026 fiscal policy; mega/infra projects. BNM has started to reduce OPR rates and its pointing towards expansionary/accommodative monetary policy to stimulate investment/consumption to support growth.
TRC is in net cash position and it has the opportunity to shift its capital structure during such monetary/fiscal policy period - use the net cash position for bargaining and add leverage for mega projects to drive growth if you will.
Yes it is, hktee. Flattish revenue doubled the margins against Q1; better earnings quality and cost management if you will. Hopefully they will be able to secure more contracts from the recent 1.4bil tenders submitted.
Cash is boss but cash can drive bosses to make wrong decision at times. Lol, no pun intended. Later boss suddenly initiate privatization instead of using the cash to secure more projects.
dry... the next few months infra contracts announcements from gomen will probably be coming from Penang LRT subcontracts & systems package; highway contracts from east malaysia and ECRL section D package. TRC tendered 1.8bil worth of projects this year and current construction orderbook on hands ~468mil is kinda low; 2 years earning visibility excluding property segment.
zzzz. Starting to see Penang LRT subcontracts announcement. 2 sub packages on piling jobs went to Geohan. Please work harder bosses of TRC. Lol, no pun intended.
the biggest currency impact will be SGD due to the cash balances of TRC is mostly denominated in SGD. its a favorable trend for TRC due to strengthening of ringgit. I hope there will be contracts awarded soon for earnings visibility beyond 2 years
Is the underlying business in distress? Is management lacking credibility? Are there major regulatory or litigation overhangs that could materially erode cash reserves? Is the weakness driven by short-term market distortions — or are there other factors at play?
Probably due to no contracts awarded in 2025? No idea the exact reason but I am willing to take some calculated risks to hold it until end of next year :) The big MRT3 project will probably be awarded second half of next year. Unlikely for TRC to get the main work packages but it is definitely more than qualified and capable to secure sub-packages. Mgmt mentioned that it has tendered more than 1bil worth of gomen projects and current orderbook is slight more than 450mil which will provide earnings visibility for two years excluding property segment. The Ara Sentral Phase 2 property segment should start to see contribution second half 2026.
copied and paste the previous sharing/discussion in this thread, ncc. (1) the next few months infra contracts announcements from gomen will probably be coming from Penang LRT subcontracts & systems package; highway contracts from east malaysia and ECRL section D package. TRC tendered 1.8bil worth of projects this year and current construction orderbook on hands ~468mil is kinda low (2) The big MRT3 project will probably be awarded second half of next year. Unlikely for TRC to get the main work packages but it is definitely more than qualified and capable to secure sub-packages. Mgmt mentioned that it has tendered more than 1bil worth of gomen projects and current orderbook is slight more than 450mil which will provide earnings visibility for two years excluding property segment. The Ara Sentral Phase 2 property segment should start to see contribution second half 2026.
the next contracts that will be awarded by gomen will be related to highway contracts from east malaysia, ECRL related and MRT3. These contracts should be dominating the infra projects headlines in 2026. No idea which one that TRC tendered but 1.8bil worth of projects is quite big of a number :)
“For 2026, we maintain our contract award assumption of RM180 bil, supported by continued public-sector project rollouts and sustained private-sector momentum, particularly from data centres,” said Kenanga. Sector visibility continues to improve on both public infrastructure and private development fronts. Although the timing for MRT3, now with final approval from the Transport Ministry, remains unclear, several key projects are poised for near-term roll-out. These include the Penang LRT Mutiara Line Packages 2 & 3, Penang Airport expansion, Phase 2 of the Pan Borneo Highway, the Sabah–Sarawak Link Road, Subang Airport redevelopment, and the Johor E-ART. https://focusmalaysia.my/tech-giants-data-centre-spending-anchors-construction-outlook-to-2030/
TRC has tendered 1.8bil+ projects last year. So far, it has secured ~800mil from the tenderbook; the penang lrt plus today's contract. More to come given the strength of TRC and big boss in the industry :)
Big boss is construction industry veteran and low profile. Subsequent contracts should be highway contracts and followed by sub packages for MRT3 second half of this year or early next year. As for the property segment specifically Ara Sentral Phase 2, the timeline for launching is second half of this year too; steady recurring income for the next five years from the property segment