UOB Kay Hian has upgraded its call for MALAYSIAN RESOURCES CORP [] Bhd (MRCB) call to BUY from HOLD, and RNAV-based target price to RM2.86 from RM2.30.
It said on Thursday, April 7 the new target price was after incorporating the present value of ongoing and future developmental enhancements at its KL Sentral flagship development (the previous RNAV conservatively used only the market value of land prices), plus an option value (RM151m or 4% of RNAV) of securing the highly-coveted parcels of the federal government’s Sungai Buloh landbank.
“A recent visit to the company reinforced our optimism of MRCB’s chances of securing at least one of the nine land parcels in Sungai Buloh.
“Other catalysts include: a) its JV with Ekovest Berhad securing a parcel of the Klang river cleaning project estimated to be worth RM500m, b) clinching part of other mega projects like the MRT (elevated portion),” it said.
On the negative side, UOB Kay Hian said it was disappointed that MRCB lost its bid to develop the federal government’s land in Jalan Cochrane.
It said on Thursday, April 7 the new target price was after incorporating the present value of ongoing and future developmental enhancements at its KL Sentral flagship development (the previous RNAV conservatively used only the market value of land prices), plus an option value (RM151m or 4% of RNAV) of securing the highly-coveted parcels of the federal government’s Sungai Buloh landbank.
“A recent visit to the company reinforced our optimism of MRCB’s chances of securing at least one of the nine land parcels in Sungai Buloh.
“Other catalysts include: a) its JV with Ekovest Berhad securing a parcel of the Klang river cleaning project estimated to be worth RM500m, b) clinching part of other mega projects like the MRT (elevated portion),” it said.
On the negative side, UOB Kay Hian said it was disappointed that MRCB lost its bid to develop the federal government’s land in Jalan Cochrane.
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