NVDA
NVIDIA
-- 109.670 TSLA
Tesla
-- 263.550 CRWV
CoreWeave
-- 40.000 GOOG
Alphabet-C
-- 156.060 GOOGL
Alphabet-A
-- 154.330 The creation of a growth engine in Johor XINJINGJI Region, where the industry and construction sectors are the big winners.
(Kuala Lumpur, 8th) Malaysia and Singapore have finally signed a formal agreement on the Johor XINJINGJI Special Economic Zone (JSSEZ). Market analysts believe that this will drive Johor to become one of the country's economic growth engines, with the local construction and industry sectors being the main beneficiaries.
Industrial analysts at CIMB Investment Bank pointed out that the Johor XINJINGJI Special Economic Zone itself is a quite attractive plan, as Johor provides an environment with lower operating costs, abundant land supply, as well as ample technical manpower and suitable infrastructure, while Singapore can bring in the necessary funds and technology for development.
"The tax incentives for businesses and individuals brought by the relevant plans, the government's commitment to creating a one-stop center to expedite all procedures, and the establishment of an infrastructure fund are all icing on the cake for potential investors."
The analyst believes that XINJINGJI Special Zone will strongly drive Johor to become the economic growth engine in southern Malaysia.
Various news related to foreign direct investment (FDI) will encourage the performance of Johor-themed stocks.
In his view, the construction and industrial sectors are significant beneficiaries of the XINJINGJI Special Zone plan, with the main preferred stocks of related themes being:
In addition to the theme stocks of economic zones, the analyst remains optimistic about the overall outlook of the Malaysian stock market, believing that domestic stability is sufficient to offset the turmoil caused by external factors, while ample liquidity in the market, stable corporate profits, and low valuations can also drive the performance of Malaysian stocks.
Industry long-term demand is supported
Maybank investment bank analysts pointed out that with the implementation of the XINJINGJI win-win plan in Iskandar new economic zone, it is expected to bring about a dual growth effect of population and wealth to the Johor region, thereby stimulating the long-term demand for local residential, commercial, and industrial sectors.
"We focus on industries with strong operational records and excellent management capabilities, especially the expansive Iskandar new economic zone, which provides all local landowners with a fair competitive opportunity."
However, the analyst also mentioned that since UEM Sunway is already a major landowner in the Iskandar region, owning a vast land bank of 4,783 acres in Iskandar Puteri, there is a fair chance to compete for some of the investment projects that the Iskandar new economic zone aims to attract.
According to the news currently released, the XINJINGJI special economic zone in Johor will cover the existing Iskandar and Bengkala areas, with one of the goals being to attract 50 new investment projects.
Most of the bullish news has already been reflected.
However, the analyst believes that even though the XINJINGJI special economic zone is significantly beneficial to developers like UEM Sunlight, most of the bullish news has already been reflected in the current stock price, so investors can now look for opportunities to profit from the high prices.
He maintains the industry's rating at 'Neutral'.
On the other hand, the securities analyst is more optimistic, maintaining the industry's rating at 'Shareholding', and pointing out that the XINJINGJI special economic zone can significantly boost industrial demand in the Johor region.
"Investment interest and economic activities in the Johor region will increase, driving a significant rise in industrial demand."
The analyst believes that developers who hold a certain land bank in key areas of the XINJINGJI special economic zone will benefit significantly, mainly including:
Creating a large number of construction business opportunities.
In addition, an Industrial analyst from Industrial Investment Bank of China stated that the XINJINGJI Special Economic Zone in Johor aims to attract 100 investment projects within the first 10 years, including aerospace, electronics, and tourism projects, which will create a large number of business opportunities in the construction sector.
Meanwhile, Malaysia will establish an Infrastructure Fund for the Special Economic Zone to carry out various infrastructure projects to support the development of the zone, benefiting construction contractors.
The analyst maintains a "Shareholding" rating for the construction sector and selects Sunway Construction and IJM as preferred construction stocks.
The XINJINGJI Special Economic Zone focuses on developing logistics, electronics and electrical (E&E), and manufacturing projects, with Sunway Construction and IJM being frontrunners in bidding for construction contracts in the relevant fields.
He mentioned that Sunway Construction has secured a Ringgit 3.9 billion Datacenter project in Johor, giving the company an advantage when competing for other industrial projects such as warehouse and semiconductor factory construction contracts.
The analyst also mentioned that while IJM has just started constructing a Datacenter in the Johor region, the company has accumulated rich construction experience in semiconductor factories in Penang and logistics centers in Selangor, making it a suitable contractor for the XINJINGJI Special Economic Zone.
Source: Nanyang Siang Pau
Disclaimer: This content is for reference and education purposes only and does not constitute any specific investment, investment strategy, or endorsement. Readers should bear any risks and responsibilities arising from reliance on this content. Before making any investment decisions, it is essential to conduct independent investigations and assessments and consult professionals when necessary. The author and relevant participants are not responsible for any losses or damages arising from the use of or reliance on the information contained in this article.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Vanity of vanities : No need to be too optimistic. Doesn't everyone know that the Malagasy government has always been all talk and no action? Moreover, the political situation is extremely unstable now. It's better to wait until it's truly implemented. On another note, JSSEZ Tanaraki is already a hot spot for economic growth. This move is nothing but a futile effort, just selling hot air to the public.
CK168 Vanity of vanities : wait until truly implemented then price goes up and buy from you at 100% premium?![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
HannChau CK168 : haha he want to buy high sell low.
请不要问 : Many unfinished buildings, be careful as this Stocks may drop to 0.22