TRC Synergy Berhad (TRC) delivered a higher net profit YoY 13.6% to RM25.3m for FY23 vs. RM22.3m.
TRC is likely to ride on the planned mega infrastructure projects going forward. Increased momentum from the progress of ongoing projects such as ECRL, RTS Johor-SG and others would bode well for TRC, Malacca Securities (MSSB) said in its Technical Focus note today (Apr 3).
Technically, TRC experienced a breakout above RM0.475. Monitor for follow through buying interest, targeting RM0.53-0.54, with a LT target at RM0.56. Support is located around RM0.465-0.47, while cut loss is at RM0.46 TRC delivered a higher net profit YoY.
In FY23, TRC has achieved a net profit of RM25.3m from RM22.3m (+13.6% YoY) due to better gross profit margins from a better-than-expected final accounts recognition from a completed project and the revision of budgeted costs for some projects nearing completion.
Riding on the medium to long-term rollout of planned mega infrastructure projects. TRC has the necessary expertise and experience to take on such infrastructure projects, thus they will likely benefit from the rollout of projects such as MRT Circle Line 3, Penang Light Rail and flood mitigation projects.
Increased momentum from the progress of ongoing projects. TRC expects the speeding up of ongoing projects such as the East Coast Rail Link, 5G Network Rollout, Rapid Transit System Link between Johor and Singapore, as well as the Pan Borneo Highway to improve the engagement within the civil construction sector.
Technical Outlook
Share price has been consolidating around RM0.465 and experienced a breakout above RM0.475. As the technical readings are positive, MSSB expects follow-through buying interest to be seen in the near term, targeting RM0.53-0.54, with a LT target at RM0.56. Support is set around RM0.465-0.47, with a cut loss set around RM0.46.
TRC operates as general contractors carrying out construction works, sells construction materials, and develops property. TRC also hires and services vehicles and manufactures concrete piles and ready-mixed concrete.
