PETALING JAYA: TA Securities is convinced that the Penang Transport Master Plan (PTMP) will serve as a solid rerating catalyst for the state’s construction sector.

“We are optimistic about Penang’s residential property market.

“It is driven by the robust recovery of the medical and tourism sectors on Penang Island post-pandemic, coupled with the thriving industrial sector on both Penang Island and the mainland,” it said.

In a statement today, the research house said that PTMP will also be a catalyst for the city to tackle mounting traffic congestion, with Gamuda Bhd and Kerjaya Prospek Bhd being the primary beneficiaries of the PTMP.

“TA Securities maintains its ‘overweight’ stance on both the property and Malaysian real estate investment trust (MREIT) sectors,” TA Securities said.

The research house has a “buy” rating on Gamuda with a target price (TP) of RM5.19 given that the group has a substantial exposure in Penang via SRS Consortium Sdn Bhd.

This is followed by keeping a “buy” call on Kerjaya Prospek with a TP of RM1.57 for its strong track record in Penang’s construction sector.

Other listed construction players that could potentially benefit from the PTMP include IJM Corporation Bhd (TP of RM1.85) and WCT Holdings Bhd (TP of RM1.57).

Sunway Construction, known for its expertise in railway-related jobs and civil works for township development, is also listed among companies expected to benefit from the PTMP.

Moreover, it anticipates that PTMP will serve as a long-term catalyst, enhancing land value, stimulating economic activity, and driving housing demand in Penang.

Consequently, it stated that property developers holding landbanks in Penang Island stand to gain long-term from the enhanced road and public transport connectivity under the PTMP.

Among the potential beneficiaries of the Bayan Lepas LRT project include Eastern & Oriental Bhd, Ideal Capital Bhd, IJM Corp Bhd, Ivory Properties Group Bhd and Mah Sing Group Bhd.

“To a lesser extent, Eco World Development Group Bhd, Paramount Corp Bhd, Tambun Indah Land Bhd and SP Setia Bhd, which have landbank in mainland Penang, could also reap benefits from the improved road and rail network,” it said.