Tat Hong

Tat Hong: Credi Suisse issued unrated report. The weak 1Q14 results were largely due to one-offs, plus demand slowdown in key markets, with Australia (46% revenues) being the key weakness. Nevertheless, the house expects commencement of some delayed project commitments post election. Singapore (23% revenues) remains steady with MRT projects, but the rest of ASEAN sees some softness. Malaysia is seeing completion of some major projects, Indonesia is seeing demand softness inline with commodity prices and Thailand is seeing slower demand. With revenue expected to stabilize, mgt focus is on improved cost efficiency and capex discipline.