HLIB Research believes the company, which is engaged in construction and property development, will focus its bidding on the smallest civil turnkey package (RM3bil to RM4bil), based on its financial capacity.
PETALING JAYA: TRC Synergy Bhd
is projected to sustain a soft patch in earnings in the financial year 2022 (FY22) and FY23 before picking up in FY24, underpinned by securing contracts from the upcoming MRT3 project.
HLIB Research believes the company, which is engaged in construction and property development, will focus its bidding on the smallest civil turnkey package (RM3bil to RM4bil), based on its financial capacity.
“We consider TRC to be a key beneficiary considering its high bumiputra ownership, extensive track record in mega railway projects and healthy balance sheet,” said HLIB in a report.
Either through turnkey or subcontracts, the research house noted the MRT3 project is proving critical to the group as it sees a thin cover ratio for its unbilled orderbook, at an estimated 1.7 times cover. This was due to weak job flows in the past two years.
