BTP : A Sector Widely Favored on the Stock Market

The BTP sector is favored by financial analysts. On the stock market, sector values are among those performing best on the exchange, with performances reaching up to 642% for Jet Contractors in 2024. Indeed, this was the best performance recorded last year.

TGCC, its direct competitor, showed a stock price growth of 156%, and Sonasid of 49%. The stock price growth is not about to slow down, as a double-digit increase is observed in sector values this year. The sector index, however, recorded a performance of 7% in 2025 compared to 23% the previous year.

The stock price behavior is boosted by the dynamics in which the construction market is engaged, considering the launch of several structural projects that fit into both the framework of the 2030 World Cup and the upgrading and development of infrastructure and facilitating access to housing.

Moreover, as indicated by BMCE Capital Global Research (BKGR) in its research note on the sector, TGCC should fully benefit from the operationalization of the new housing aid scheme, which will induce the development of construction activity, particularly in new developed areas, as well as the relaunch of housing demand following the organization of two major sporting events in Morocco.

In parallel, the group is positioned on several projects launched as part of the modernization of the Kingdom’s infrastructure, as well as on private health and real estate projects, such as the Al Barid stadium, the Ibn Sina University Hospital, and the UM6P.

Jet Contractors, diversified activity

Similarly for Jet Contractors, which already has a substantial order book, estimated at nearly 8 billion dirhams in the first half of 2024. It must be said that the group has a strong point compared to its competitors. Indeed, the company stands out for its rigorous industrial integration strategy, based on the creation of specialized subsidiaries that optimize the entire lifecycle of projects.

They operate in key sectors such as infrastructure, energy, and construction… which allows them to offer solutions perfectly adapted to market requirements, while favoring effective cost and deadline management and ensuring optimal synergy between the different phases of projects.

Sonasid, on the other hand, should benefit from the strong demand for steel products by 2028, as part of the launch of several projects, such as the reinforcement of hydraulic infrastructure planned as part of the deployment of the emergency plan to address water stress, including the program to build 18 large dams and 8 small ones over the period 2024-2029 and the launch, in 2024, of the construction work on the largest desalination plant on the continent south of Casablanca.

All the more so as the upgrading of hotel, sports, and logistics infrastructure, the housing assistance program, as well as the program to rehabilitate regions affected by the Al-Haouz earthquake should benefit the group.

In this increasingly favorable sectoral environment, BKGR estimates that the steelmaker is also seeking to capitalize on the deployment of its strategic diversification plan for 2024-2028, including the start of production of high-added-value products, namely prestressed wire in 2024 and prestressed strand in 2027, progressive penetration of the automotive industry with the development of steel cables serving the door opening mechanism, and a 25% increase in its green steel fiber production capacity.

Increase in BFR to be monitored

This context remains profitable for cement companies as well. Indeed, all the construction projects initiated in sports, hotel, hydraulic, or real estate infrastructure should boost the activity of these companies.

However, if there is a point of vigilance for construction companies, notably TGCC and Jet Contractors, it is related to the behavior of the BFR.

BKGR analysts thus highlight that the positioning of these two groups in state markets and the increase in the share of these markets in their activity portfolio could lead to an increase in BFR, due to the generally slow payment deadlines of the state.

This could exert strong pressure on cash flow. Hence the interest in rigorous liquidity management to preserve financial balance and, consequently, the economic model of the two listed operators.

Obligations, TCN…, operators diversify their financing sources

To finance the realization of all awarded contracts, contribute to access to housing, and improve infrastructure, construction operators, including the two listed companies (TGCC and Jet Contractors), seek financial resources through the private debt market, among others.

Through private placement, TGCC recently raised 450 MDH from qualified investors. The same for Jet Contractors with an amount of 400 MDH. In addition to this, these two industrial groups resort to the market for negotiable securities with a treasury bill balance of 4 billion dirhams for the first and 864 DH for the second, in 2024.