KUALA LUMPUR (June 4): RHB Investment Bank Research (RHB IB) has maintained its 'overweight' rating for the construction and engineering sector, and said developments in terms of new data centres (DCs) appears to be a testament to Malaysia’s vibrant market for DCs, which in turn benefits the construction sector in terms of providing job replenishment opportunities.
In a sector update on Tuesday, the research house said contractors with certain niches, such as industrialised building system (IBS) capabilities — namely Gamuda Bhd (KL:GAMUDA) — are set to benefit from the DC growth prospects in the longer run.
RHB IB said that with more contractors venturing into the DC construction market, players should develop their own respective niche in the DC supply chain, with Gamuda positioning itself as an efficient DC builder via its IBS expertise. It completed its first DC job for the AIMS Data Centre (8MW) in just eight months, versus the anticipated 13 months.
“Top picks for the DC construction play include Gamuda and Sunway Construction Group Bhd (KL:SUNCON), which have secured a total of at least RM2 billion worth of DC contracts. A notable mention would be IJM Corp Bhd (KL:IJM), which has been involved in providing industrial piles for DCs, and has a DC contract under its tender book.
Read also:
Google to invest US$2b for data centre and cloud region in Malaysia
Gamuda wins RM1.74 bil job to build Sime Darby Property’s hyperscale data centre at Elmina Business Park
Sime Darby Property to build, lease out data centre in RM2 bil deal
SunCon secures RM748 mil job to build data centre in Selangor
AWC secures plumbing jobs at Hospital Kapar and Cyberjaya data centre