PETALING JAYA: United U-Li Corp Bhd
is bracing for busier times ahead, driven by potential orders from the Mass Rapid Transit 3 (MRT3), Rapid Transit System (RTS), Singapore MRT expansion and new data centres, says Kenanga Research.The group has seen a strong pick-up in orders for its key product such as cable support systems, added the research house.
Post a recent meeting with the company, Kenanga Research said: “We came away feeling upbeat on its prospects, driven largely by its cable support systems segment.” Some of the key takeaways include the group’s 81 ongoing projects secured this year, which are anticipated to bolster its short-term revenue.
These ventures encompass high-tech initiatives such as the Intel Pelican project, along with key infrastructural engagements and several data centre projects as well as hospitals and MRT projects in Singapore, Kenanga Research said in its latest report.
Concurrently, United U-Li has indicated an uptick in orders, corresponding with the gradual resumption of construction activities in the local regions and Singapore.
Currently, the total order book is valued at RM80mil which is expected to keep the group busy for two to three months.
Meanwhile, Kenanga Research said the mega projects lined up for the next five years, including MRT3, Rapid Transit System and several data centres are poised to ensure consistent revenue and foster growth in the years to come.
“Having the largest market share in the cable support system, which has also become less competitive after the pandemic era, we believe United U-Li stands a strong opportunity to secure these jobs,” added the research house.
At a utilisation rate of 85% presently, United U-Li has little room to cope with rising demand. The group will introduce several new lines to serve both its existing and new products, it added.
