The new governor (Chris Minns), located in New South Wales, Australia, said in an interview a few days ago that the government of the former DPRK had excessively relaxed the state's current construction of the Sydney Metro West Line project in Australia. Cost estimates have soared from the initial 16 billion Australian dollars to 25 billion Australian dollars, which has already exceeded the originally allocated budget, so it is intended to put the plan on hold, and it is not ruled out that it will be cancelled
However, the governor publicly stated two days later that it is currently only in the discussion stage, including how to reduce the budget, shorten or replace routes, and expand development value, etc. At the same time, he assured reporters that “if this plan is cancelled, you can cut off my head”
According to the contract, Gammuda was the general contractor for the project and received a contract worth 2.16 billion Australian dollars on March 1, 2022. Construction in April of the same year was also the group's most valuable hand order. As of the latest quarterly report, the Group has completed 26% of its progress. If it is cancelled, then the value of losses will exceed 1.5 billion dollars, which is 4.53 billion in Malaysian dollars
As a result, Gamuda has been somewhat shaken in the past few days since the news was announced. Today, it even fell below a new low in a month, and once pulled back close to 7.5%. However, to me, investors seem to have overdigested this message. In particular, the governor has stated that he will not rashly cancel all projects, urging the public to reassure the public
Coupled with the imminent opening of the MRT3 tender, the high-speed rail agency reconvening the screening process for the Longxin High Speed Rail, and the imminent arrival of the 2024 budget, I think Gamuda is still...

According to the latest market closing situation, the real estate sector has broken through a new high since April 2022, and has rebounded 23% from the bottom of last year/ trying to break out of the slump cycle since 2018. In particular, after Malaysia ushered in several coups d'état, capital has flowed back to this sector. It seems certain that the worst situation is over
In terms of support, most well-known real estate groups have delivered results in line with expectations in the past few quarters, such as Mahsing, Matrix, Spsetia, Ecoworld, and SimeProp. At the same time, the recovery in net profit also raised the dividend rate for the whole year
In terms of prospects, many large-scale projects have been put on hold after 2018, such as the Malaysia City and Longxin high-speed rail. These projects involve tens of billions of dollars in value, and the impact of the shelving on surrounding real estate development is definitely not small
However, according to the latest analysis report, the Solidarity Government intends to restart pending projects. For example, the Longxin High Speed Rail has reached a preliminary agreement and is currently discussing plans for a second home. Coupled with the Bank of China's help in stopping interest rate hikes, it's all good news that favors real estate development
Since the pandemic, real estate has been one of the areas that has recovered relatively rapidly. The average valuation for the past 5 years has remained below 10. Coupled with the lack of themes in the market and the help of many favorable conditions, the real estate sector has become a safe haven for investors, following the trend to push the sector out of the slump. So whether the rally can continue, I think the 2024 budget will be the biggest key
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