MRCB

Re: MRCB

Postby winston » Thu Mar 01, 2018 8:52 am

MRCB targets large infrastructure jobs

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) expects its engineering, construction and environment businesses to contribute a larger share of revenue in 2018, as property development slows amid cooling demand in the market.

As of end of December, the group’s unbilled order book stood at RM5.2bil. The division currently has open tenders valued at RM2.755bil.

MRCB said it is placing greater emphasis on seeking infrastructure and long term fee based management projects.

“We have tendered for some very large infrastructure projects and we are eagerly awaiting the results,” group managing director Tan Sri Mohamad Salim Fateh Din said in a statement.

MRCB posted a net profit of RM167.6mil, or 6.56 sen a share for the full year ended Dec 31, 2017 (FY17) as revenue climbed to RM2.82bil.

Revenue from the engineering, construction and environment division doubled to RM1.77bil, boosting its operating profit to RM92.7mil.

Its 50% joint venture MRCB George Kent Sdn Bhd, the project delivery partner of for LRT 3 project contributed RM15.2mil in after tax profit.

The group’s property division recorded a total sales of RM1.42bil last year, higher than its original target of RM1.2bil.

Despite the stronger sales, revenue from the division dropped by almost a third to RM858.7mil, while profit declined to RM176mil.

“Overall, the group had total cumulative unbilled sales in its property development & investment which are expected to deliver RM1.71bil in revenue to be booked over the development lifespan of its projects,” MRCB said.

About 80% of the unbilled sales are residential units, while th remaining consisted of commercial properties.

MRCB has interests in 393 acres of urban land with a combined gross development value of RM55bil.

“2017 was a watershed year in MRCB’s transformation journey. Despite a challenging timeline, we successfully refurbished KL Sports City in Bukit Jalil in time for the 2017 SEA Games, and we significantly strengthened our balance sheet,” Mohamad Salim said.

MRCB had completed a RM1.732bil rights issue exercise in the last quarter of 2017.

Source: The Star

https://www.thestar.com.my/business/bus ... UYrcAb0.99
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Re: MRCB

Postby winston » Mon Mar 26, 2018 9:29 am

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KSSB awards MRCB Land a RM7.5bn contract

MRCB Land has been appointed management contractor for Kwasa Damansara’s MX-1 portion. Of the RM7.5bn contract value, 81% is estimated for construction.

We estimate RM22m net profit contribution p.a., based on a 5% management fee.

Earnings from the RM10.5bn GDV to contribute after our forecast period.

Source: CIMB

https://brokingrfs.cimb.com/W15mZjyBEOJ ... 333Lg2.pdf
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Re: MRCB

Postby winston » Tue May 22, 2018 8:27 am

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MRCB is no more a ‘single-project’ company

by Eugene Mahalingam

The proposed disposal of the Eastern Dispersal Link (EDL) would help reduce the company’s gearing further.

Imran said MRCB hopes to dispose of the EDL by year-end.


MRCB posted a net profit of RM167.6mil, or 6.56 sen a share, for the full year ended Dec 31, 2017, as revenue climbed to RM2.82bil.

“Only 23% of our construction orderbook is from the government. We have around RM2.9bil in terms of tenders at the moment.”

We can’t just keep growing our orderbook. It’s at RM6.8bil to date. As long as we maintain between RM5bil and RM8bil, our ecosystem is sustainable.”


Source: The Star

https://www.thestar.com.my/business/bus ... uiZ1Zlk.99
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Re: MRCB

Postby winston » Wed Jun 20, 2018 7:07 am

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MRCB group MD Mohamad Salim to retire end-June, Imran to take over

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) group managing director Tan Sri Mohamad Salim Fateh Din is expected to retire by the end of June, while his son Mohamad Imran is set to take over.

UOB Kay Hian Malaysia Research said it awaits more details on the development and has a Buy call on the construction-property company with a target price of RM1.01.

Salim is the second largest single shareholder of MRCB with 16.6% after the Employees Provident Fund (EPF) that owns 34.87%.

Salim ended with the block after the injection of his Garpuna Group into MRCB, a deal which was completed in 2013.

Imran is currently an executive director of MRCB. Prior to that, he was the group chief operating officer of MRCB from March 2013 to February 2015.

The research house said while it await more details, its positive view of MRCB remains unchanged.

“MRCB remains a deep value stock with high asset monetisation potential, riding on controlling shareholder, the Employees Provident Fund (EPF) board,” it said.

UOB Kay Hian Research still expects the completion of stake sale of Bukit Jalil property development to EPF in June, a major de-gearing exercise.

Its target price of RM1.01 was based on a 20% discount to its sum-of-parts valuation of RM1.26 a share, implying 24.3 times 2019F price-to-earnings.

Source: The Star

https://www.thestar.com.my/business/bus ... wxOjmLO.99
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Re: MRCB

Postby winston » Mon Sep 03, 2018 9:14 am

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Malaysian Resources Corporation (MRC MK)
1H18: A Soft Patch In 1H18, But Stronger Propects Ahead


MRCB will continue to focus on strengthening its core business (property and construction divisions) in the coming quarters after the dismaying 1H18 performance, which accounted for 22% (core net profit) of our full-year estimates, dragged by slower-than-expected progress billing and weak property sales.

Meanwhile, MRCB remains upbeat on its strategic plans to dispose of its two key non-core assets, Bukit Jalil land and EDL before the year’s end.

Maintain BUY.
Target price: RM0.98.

Source: UOBKH

https://research.uobkayhian.com/content ... 3e96a552f1
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Re: MRCB

Postby winston » Mon Sep 03, 2018 9:20 am

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It all boils down to the sale of EDL

1HFY18 core net profit was below expectations mainly due to weaker property sales.

RM5.1bn order book has substantial upside from property development spin-offs.

Impact of LRT 3’s conversion from PDP to design and build scope remains unclear.

MRCB targets to finalise EDL sale in 4Q18. EDL debt: 26% of total debt.

Maintain Reduce with a higher target price (30% RNAV discount). We estimate a 14 sen/share upside to TP if the EDL debt is stripped out

Source: CIMB

https://brokingrfs.cimb.com/DM2RHtO-Puq ... k4vag2.pdf
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Re: MRCB

Postby winston » Mon Sep 03, 2018 9:20 am

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It all boils down to the sale of EDL

1HFY18 core net profit was below expectations mainly due to weaker property sales.

RM5.1bn order book has substantial upside from property development spin-offs.

Impact of LRT 3’s conversion from PDP to design and build scope remains unclear.

MRCB targets to finalise EDL sale in 4Q18. EDL debt: 26% of total debt.

Maintain Reduce with a higher target price (30% RNAV discount). We estimate a 14 sen/share upside to TP if the EDL debt is stripped out

Source: CIMB

https://brokingrfs.cimb.com/DM2RHtO-Puq ... k4vag2.pdf
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Re: MRCB

Postby winston » Fri Oct 12, 2018 8:47 am

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Malaysian Resources Corporation (MRC MK)
Transformation On Track


MRCB remains upbeat about its strategic asset monetisation being concluded by the year-end via its transformation strategy; it continues to focus on cost rationalisation by efficiently managing its recourses with plans to explore business management systems.

Meanwhile, its core business remains solid, underpinned by a strong orderbook backlog of RM5.1b for its construction business and a promising property development business (~GDV: RM56b).

Maintain BUY. Target price: RM0.98.

Source: UOBKH

https://research.uobkayhian.com/content ... e07a0e47a7
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Re: MRCB

Postby winston » Wed Feb 20, 2019 10:05 am

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Malaysian Resources Corporation (MRC MK)

Phasing Into A Prosperous 2019

2018 was a transition year for MRCB, where it managed to dispose of its non-core assets and resolve issues concerning the much-disputed LRT3 project.

MRCB is expected to deliver stronger earnings from 2019 onwards, underpinned by recognition of LRT3 progress billings (from 2H19) coupled with the recognition of its unbilled property sales and property inventory sales, in addition to the huge interest savings following the net gearing decline.

Maintain BUY. Target price: RM0.963

Source: UOBKH

https://research.uobkayhian.com/content ... a7e4274d65
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Re: MRCB

Postby winston » Mon Jul 06, 2020 9:14 am

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On stocks selection, trading at undemanding 0.45x P/B and following recent base building near RM0.465-0.475, MRCB (RM0.495-HOLD-TP RM0.50) should begin recovery phase.

Overall, the stock offer a good odds of outperformance as the market has built in little expectations on them for their status as the largest Bumiputera contractor, armed with undeveloped gold plots lands at developed/matured areas.

Current unbilled sales remain healthy at RM1.3b (2.3x cover on FY19 property revenue) while outstanding orderbook stands at ~RM16.8bn translating to a tremendous c.24x cover.

Progress for LRT3 project is at 30% completion with target of 40% by year end.

Technically, a confirmed breakout above RM0.51 (30D SMA) will lift prices higher towards RM0.565-0.595 zones. Cut loss is placed at RM0.45.

Source: HLIB
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