MRCB

MRCB

Postby winston » Fri May 27, 2011 9:49 am

Not vested

Valuation/Recommendationï‚·

Our RNAV-based target price of RM3.02 remains. New landbank acquisitions will boost our RNAV (see RHS).

Share Price Catalystï‚·

Apart from securing valuable land parcels and being awarded major construction contracts, MRCB features a high beta of 1.8 which should see it rally ahead of possible early general election.

Future potential to co-develop a 24-acre site in Penang Sentral.

Future property development projects and land acquisitions in Klang Valley, Johor Bahru and Penang.


Source: UOBKH

http://research.uobkayhian.com/content_ ... 7920aef719
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Re: Malaysian Resources Corp

Postby winston » Sat Jan 04, 2014 6:51 pm

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Malaysian Resources Corp Bhd

A number of “monetisation” exercises poised to take place in the first quarter of this year should catapult MRCB back onto the radar of investors and analysts. Insiders say the exercises could include the disposal of a major non-core unit and the creation of a large commercial REIT (real estate investment trust), the latter possibly via a merger and acquisition of an existing REIT.

These exercises should raise enough cash to repay a significant portion of its debts. MRCB was
in a net debt position of close to RM3bil as of Dec 31, 2013.

MRCB chief operating officer Imran Salim (pic right) said in a recent interview that the company was seriously making efforts to turn itself into a pure property-focussed group.

Imran is the son of Datuk Mohamad Salim Fateh Din (pic left), the self-made entrepreneur and property tycoon who emerged as MRCB’s new CEO in September following the merger with his privately held Nusa Gapurna Sdn Bhd. Both father and son are busy turning around MRCB but poor earnings in the third quarter spooked investors and analysts.

MRCB posted a loss of RM122mil for its third quarter ended Sept 30, 2013 compared with a net profit of RM35.8mil a year ago as a result of significant provisioning, following an apparent kitchen-sinking exercise by its new owners.

But moving forward, there are positive catalysts. First up, is the strong possibility that the company could be announcing some major “unlocking of value” deals that could include the
sale of a significant non-core business.

There is speculation that it could create a mega REIT, which would be progressively used to inject more of its yielding assets into.

MRCB had also said there would be no more kitchen-sinking exercises in the near future. On
the contrary, earnings could get a boost from capital gains from disposal of assets.

Salim and son are also promising an improvement in efficiency through better management
of operations that should translate into better margins and lower cost over-runs.

And they are positive on the outcome from their negotiations with the Government on
charging toll on its Eastern Dispersal Lin Expressway (EDL). If successful, this would be a cash cow for MRCB.

Catalysts

- Monetisation exercises will see MRCB unlock value and de-gear.

- New management team led by Salim and son to turn around the company and enhance effiencies and margins.

- Stock price has yet to factor in the turnaround efforts.

- Successful negotation with Government on EDL toll.

Risks

- Can they find buyers for their assets at the right price?

- New management may not be able to integrate the incumbent team.

- Property market downgrade.


Source: The Star
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Re: Malaysian Resources Corp

Postby winston » Tue Jul 01, 2014 9:35 am

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Winning Another Stage

MRCB announced its tender win for Phase 1 of the Kwasa Damansara development.

Phase 1, dubbed Project MX-1, would be the nucleus of the 2,300-acre township, which includes two MRT stations.

We are positive on the win and believe this would be another re-rating catalyst for MRCB.

We maintain our valuation pending MRCB’s revelation of project details, but estimate this new landbank could add 32 sen to our RNAV/share.

Maintain BUY. Target price: RM2.05.

source: UOBKH
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Re: Malaysian Resources Corp

Postby winston » Sun Oct 19, 2014 5:58 am

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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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Re: MRCB

Postby winston » Thu Nov 23, 2017 8:37 am

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Trading Buy: MRCB-1651
(Last price: RM0.985, Potential upside +20.8%)


Company Profile

MRCB is engaged in construction (niche strength in environmental projects), property development and investment and toll road operations. It is known for its transit-oriented developments (TOD) for example KL Sentral, Bukit Jalil City, Kwasa Damansara and Penang Sentral.


Trading Catalyst

HLIB institutional research upgrades to BUY with a new TP of RM1.18

Earnings turaround is on the cards in tandem with the stronger-than-expected 3Q17 results from property revenue and construction margin and better financial footing from recent degearing exercise.

Management estimates that the disposal of EDL, Menara Celcom and Ascott would be catalysts for the stock and could potentially transform its balance sheet into a net cash position, thereby in a much better position to execute its various catalytic projects.

Potential downtrend reversal amid tweezers bottom formation.

Technical View
Resistance: RM1.03 / RM1.10 / RM1.19
Support: RM0.940 / RM0.910
Cut loss: RM0.900

Key Financial Stats
Trading at 17% to 2017 BVPS of RM1.18

Source: HLIB
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Re: MRCB

Postby winston » Sun Dec 03, 2017 9:18 pm

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MRCB's higher 9-month profit boosted by big jump in revenue

Malaysian Resources Corp Bhd (MRCB) posted a 5.6% jump in pre-tax profit for the first nine months of this year to RM115.76mil if the RM44.4mil gains from one-time disposals recorded in last year’s corresponding period are excluded.

In a statement yesterday, the property and construction group said it also recorded an encouraging 75.5% jump in revenue to RM2.42bil for the January-September period.

For the third quarter to Sept 30, MRCB recorded a 15.1% year-on-year drop in pre-tax profit to RM52.32mil, while revenue more than doubled to RM1.13bil.


Source: The Star

https://www.thestar.com.my/business/bus ... n-revenue/
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Re: MRCB

Postby winston » Sun Dec 03, 2017 9:20 pm

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Gamuda, MRCB team up to tender for KL-Singapore HSR’s PDP appointment

Source: The Star

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

Postby winston » Tue Dec 05, 2017 8:46 am

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Rating: Outperform
Target price: RM1.14

KENANGA Research said Malaysian Resources Corp Bhd’s (MRCB) core net profit for the first nine-month ended Sept 30, 2017 (9M17) made up 104% and 52% of its and street’s full-year estimates, respectively.

It said that the performance was way better than expected, due to lumpy billings in 3Q17 from its construction division.

The negative variation compared with estimates could be due to highly optimistic margin assumptions for its construction and property divisions.

MRCB’s 9M17 property sales of RM1.1bil is on track to meet our and management’s targets of RM1.2bil. Kenanga expects sales to be slower in the fourth quarter.

On MRCB’s revenue, the strong growth was mainly driven by its construction division that registered 237% increase in construction revenue due to better billings contribution from projects like the National Sports Complex.

Kenanga said MRCB is on-track to meet its property sales target of RM1.2bil backed by projects like Sentral Suites (GDV: RM1.4bil), Bukit Rahman Putra (GDV: RM100mil), and Bandar Sri Iskandar (GDV: RM16mil).

MRCB’s remaining external construction order-book stands at about RM5.3bil. Coupled with RM1.2bil unbilled property sales, these numbers would provide the group at least four years of earnings visibility, Kenanga added.

It has raised its FY17-18 estimates earnings by 44%-13%, after factoring higher contribution from its construction division and associates.

It pointed out that the recent rights issuance exercise would bring MRCB back to a better financial footing.

The potential sale of EDL highway would be a catalyst for the stock.

Source: Kenanga Research
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Re: MRCB

Postby winston » Sun Jan 14, 2018 9:09 am

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Nov 29, 2017

Becoming the dark horse of the HSR project?

MRCB announced that it is forming a JV with Gamuda to bid for the KL-Singapore HSR project’s PDP scope (RM25bn-40bn by our estimates).

This is a positive surprise, more so for MRCB. Partnering with Gamuda for the HSR PDP is an added advantage given Gamuda’s PDP credentials for two MRT jobs.

Potential earnings impact from securing HSR’s PDP scope could be substantial; more significant compared to the existing PDP earnings of MRCB-George Kent JV.

This news could revive sentiment on the stock. Upgrade to Add, with a higher TP.

As widely reported in the press, the total estimated value of the KL-Singapore HSR ranges from RM50bn to RM60bn. Based on our back-of-the envelope calculation, and going by the 50-60% PDP portion for MRT 1 and 2, the PDP scope for HSR could be worth a minimum of RM25bn-40bn.

Upgrade to Add with higher TP of RM1.19

We believe this news could lift sentiment on the stock (down 7.4% YTD), as its infra outlook for rail contracts in 2018F could surprise on the upside. We upgrade our call to Add from Hold.

In view of the likely positive construction newsflow in the months ahead, we narrow the discount on its RNAV from 20% to 10%, lifting our target price by 13% to RM1.19.

We expect more details on the HSR PDP tenders in the next 2-3 months.

Potential PDP award is likely by mid-2018F. Downside risk to our call is weak job wins.


Source: CIMB

https://brokingrfs.cimb.com/JCOIs7ITT7e ... V9qTA2.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: MRCB

Postby winston » Thu Jan 18, 2018 10:07 am

Starting Off On A Clean Slate

MRCB’s fundamentals have improved post its rights issue which raised RM1.7b that would be used to pare down debts of RM696m.

The positive resolution of the EDL issue could shelve debts by another RM1.06b and improve earnings by RM40m p.a., putting MRCB in net cash position.

Looking ahead, its focus on growth areas includes Phase 2 of ECRL, HSR and property developments.

Maintain HOLD with a higher target price of RM1.10. Entry price: RM1.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 45e727367d
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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