Translate This Page

Thursday, February 24, 2011

Malaysian Resources Corp Bhd (CIMB)

The coast is clear for Klang River job. MRCB has received an LOI for the Klang River rehab project. We are pleasantly surprised with the timing and progress of this EPP project, which will be an added catalyst for the share price. An earlier-than-expected award, possibly by end-Mar 11, and the revelation of more details of this mega job would whip up investor interest in the stock and provide greater visibility on the group’s property and construction division.

We remain optimistic about MRCB’s ability to top up its order book and continue to forecast RM1bn new contracts for 2011. We reiterate our TRADING BUY call and target price of RM3.00 which remains pegged to a 10% RNAV discount. Potential catalysts include i) this news, (ii) project awards, (iii) increased positive newsflow on ETP, and (iv) progress of the Sg. Buloh land.

No comments: