Potential hike in water tariff a boon for Engtex

CGS-CIMB Research expects better earnings growth for the company, thanks to potential water tariff hike and local infrastructure projects.

PETALING JAYA: Engtex Group Bhd’s earnings growth is expected to accelerate in the financial years of 2024 to 2025 (FY24-25), on the back of a potential water tariff hike and local infrastructure projects.

CGS-CIMB Research said the proposed water tariff hike will be a catalyst for the water sector. According to reports, it will open the doors to bigger and more organised capital expenditure allocations for pipe replacements than the yearly sum of RM1bil from Pengurusan Aset Air Bhd.