CIMB is maintaining “overweight” on Singapore’s construction sector while remaining upbeat on its outlook for 2018. In particular, the research house prefers specialist civil engineering firms that have established track records for their niche expertise – including its preferred sector pick Yongnam Holdings. This comes after CIMB hosted eight construction companies for its SGX-CGS-CIMB Construction & Infrastructure conference last Fri, where most senior management attendees expressed a generally optimistic outlook for the year. In a Mon report, lead analyst Colin Tan says that the positive sentiment is due to expectations of higher construction demand from a slew of en-bloc projects to be re-launched as well as major infrastructure projects. With BCA projecting the value of construction contracts awarded this year to rise, Tan notes that several companies are optimistic on replenishing their order books in 2H18.... Continue Reading