Construction companies have yet to reflect the full effects of the movement control order (MCO) in their earnings, says Affin Hwang Investment Bank Bhd (AffinHwang Capital), despite a majority of them seeing depressed results for the first quarter of 2020 (1Q20).
“A majority of the companies under our coverage reported 1Q20 earnings that were below market and our expectations. Aggregate net profit for the sector contracted 41 per cent year on year (y-o-y), mainly due to slow progress billings and exceptional losses,” the research house said in a sector review yesterday.
