Thomson Line / Potential beneficiaries

Thomson Line / Potential beneficiaries: SG govt has announced SG’s 6th rail network ‘The Thomson Line’ (TSL) which will open from will open from 2019, instead of the indicative timeline of 2018 announced in the Land Transport Master Plan. TSL will run from Woodlands in the north to Marina Bay in the south and is expected to be built at an estimated cost of around $18b. Analysts note that properties along the line can expect an initial 10% rise in property prices in the initial stages and further upside once its in operation, although expect impact not to be that great for prime locations nearer to the city, e.g Orchard. We note that TSL will be fully underground, and with an estimated cost of $18b, which could leave a sizeable portion of contracts to be up for grabs by our construction companies. Potential Co’s that could gain from potential contract wins would include Yongnam, CSC, Hock Lian, TTJ, CSC, Koh Bros, Tritech and Lumchang. (Yongnam could still be recognized as the clear leader in tunnel strutting and steelworks)