by winston » Sun Oct 19, 2014 5:58 am
not vested
MALAYSIAN RESOURCES CORP BHD
By Hong Leong Investment Bank
Buy
Target Price: RM1.97
MALAYSIAN Resources Corp Bhd (MRCB) has been awarded a RM197.4mil contract from Johor Land, to construct the 30-storey JLand Tower at Komtar JBCC, Johor Baru, said Hong Leong Investment Bank (HLIB).
It said the construction duration was for 24 months and was scheduled for completion by Nov 2016.
“This recent award marks MRCB’s first contract win for 2014, after a lull period of one year.
“We estimate that this contract win would bring its orderbook to about RM1bil (after accounting for estimated burn rate in the third quarter), implying a decent 2.6 times cover on financial year ended Dec 31, 2013 contruction revenue,” HLIB said.
Looking ahead on other potential job wins, HLIB said MRCB (in a joint venture with Hyundai Rotem) was one of the four shortlisted parties for the waste-to-energy Kepong incinerator project, which was expected to cost RM800mil.
It saw commencement of the MX-1 parcel in Kwasa Damansara, in which MRCB will have a 70% stake, as the new catalyst.
It noted that the MX-1 parcel would perhaps be the most important component of the Kwasa Damansara development, as it was the main town centre, covering 25.9ha with an estimated RM8bil gross development value.
Source: The Star
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