Key Companies in the Forefront
Eco World Development Group Bhd (ECW MK)
Eco World stands as a prominent figure in the property sector, with a significant landbank in Johor. The group’s strategic positioning within the JS-SEZ’s designated area provides it with a robust platform for future growth. The company is marked as an “Add” with a target price (TP) of RM2.01, reflecting a promising 12.5% total return. The group’s near-term outlook is bright, bolstered by a 3-year EPS CAGR of 20.5% over FY23-26F, potential landbank monetization, and strong dividend yields.
Sunway Construction Group Bhd (SCGB MK)
Sunway Construction is set to leverage its first-mover advantage in Johor with its ongoing projects in Sedenak and K2. With a strategic partnership with Engie Malaysia and involvement in the RTS project, Sunway is poised for substantial growth. Rated as “Add” with a TP of RM6.00, the company boasts a total return of 37.4%, making it a significant player in the construction sector.
Tenaga Nasional (TNB MK)
With the anticipated rise in power demand due to data center investments, Tenaga Nasional is positioned as a key utility player. The company is recommended as “Add” with a TP of RM19.10, indicating a 39.4% total return. The JS-SEZ is expected to further boost its prospects by attracting energy-intensive industries, driving up electricity consumption.
Malakoff Corporation (MLK MK)
Malakoff is another utility company expected to benefit from the increased power demands in Johor. With a recommendation of “Add” and a TP of RM1.30, the company projects a total return of 67.2%. The company’s involvement in new power plants and renewable projects aligns with the region’s growing energy needs.
YTL Power International (YTLP MK)
YTL Power is positioned to capitalize on the utility demands of the JS-SEZ. With an “Add” rating and a TP of RM4.00, the company anticipates an 18.7% total return. YTL’s experience in infrastructure projects supports its growth trajectory in the region.
CIMB Group Holdings Bhd (CIMB MK)
CIMB is well-placed to benefit from the increased trade activities between Johor and Singapore. Rated as “Add” with a TP of RM8.66, CIMB offers a total return of 9.1%. The bank’s operations in both regions enable it to capture a significant share of the increased business flow.
Malayan Banking Bhd (MAY MK)
Maybank is set to benefit from JS-SEZ’s impact on credit demand and fee income. With an “Add” recommendation and a TP of RM12.80, the bank expects a 31.8% total return. Maybank’s presence in both Johor and Singapore positions it as a major beneficiary of the enhanced economic activities.
RHB Bank Bhd (RHBBANK MK)
RHB Bank, like its peers, stands to gain from the JS-SEZ’s economic boost. It is rated as “Add” with a TP of RM7.00, projecting an 8.3% total return. The bank’s operations in Johor and Singapore allow it to harness opportunities for financing and fee income generation.
IHH Healthcare Bhd (IHH MK)
IHH Healthcare is poised to draw in healthcare tourists from Singapore, thanks to its hospitals in the SEZ. The company holds an “Add” rating with a TP of RM7.88 and a 9.7% total return. IHH’s reputation and strategic location near the Singapore-Malaysia border make it a key player in the healthcare sector.
KPJ Healthcare (KPJ MK)
KPJ Healthcare, with its hospitals in Johor, aims to attract patients from Singapore due to its affordability and proximity. The company is rated as “Add” with a TP of RM3.04, promising a 25.0% total return. KPJ’s strategic positioning enhances its appeal to healthcare tourists.
SD Guthrie Bhd (SDG MK)
In the plantation sector, SD Guthrie is leveraging its substantial landbank in Johor for potential monetization. The company holds an “Add” rating with a TP of RM5.20, offering a 10.7% total return. Its partnership with AME Elite for industrial development underscores its strategic shift towards capitalizing on the region’s growth.
Genting Plantations (GENP MK)
Genting Plantations is exploring land monetization opportunities in Johor, marking its entry into property development. Rated as “Hold” with a TP of RM5.90, the company anticipates a 10.9% total return. Its plans for a 1,200-acre industrial park in Batu Pahat highlight its strategic initiatives.
SKP Resources Bhd (SKP MK)
Within the technology sector, SKP Resources is recognized for its EMS presence in Johor, benefiting from the assembly of higher-end industrial products. The company is recommended as “Add” with a TP of RM1.35, projecting a 36.1% total return. Its established presence enhances its prospects in the region.
VS Industry Bhd (VSI MK)
VS Industry, a key player in the EMS space, is set to capitalize on JS-SEZ’s opportunities. With a “Hold” rating and a TP of RM1.03, VSI expects a 1.3% total return. The company’s strategic positioning in Johor supports its growth trajectory.
