KUALA LUMPUR: The much-anticipated Penang LRT project is set to begin soon, according to CIMB Securities.
The firm said the groundbreaking ceremony for the Mutiara Line is scheduled for Jan 11 at Bandar Sri Pinang.
CIMB Securities said Gamuda Bhd continues to be the top choice for gaining exposure to the Penang LRT project, as its SRS Consortium was awarded the first package of the Mutiara Line civil infrastructure works through a single-sourcing request for proposal in March 2024.
CIMB Securities' preliminary estimates suggest a 60 per cent share of the RM8 billion contract would boost Gamuda's year-to-date financial year 2025 outstanding order book by 72 per cent to RM11.5 billion.
"Aside from spurring construction-related work, we believe that the implementation of the cross-channel link would bolster the development potential of MRCB's Penang Sentral — the key transport hub for the northern region of Peninsular Malaysia," it said.
CIMB Securities highlighted that accessibility to IJM Corporation Bhd's The Light Waterfront development will improve with the inclusion of two proposed stations along the Mutiara Line, positioned on either side of the project.
The firm also noted that the predominantly elevated structure of the Penang LRT system is expected to benefit Econpile Holdings Bhd.
It added that Ann Joo Resources Bhd is well-positioned to meet the project's steel requirements.
This is due to the strategic location of Ann Joo's main steel facility in Seberang Prai, just 6km from Penang Sentral and a four-minute drive from Penang Port.