Netresearch-Asia Sdn Bhd (Inet Research) has maintained its buy recommendation on Malaysian Resources Corporation Bhd (MRCB) at 82 sen with an unchanged price target of RM1 based on a 70% discount to its sum-of-parts (SOP) valuation.
It said the government's RM7 billion fiscal stimulus package announced last week was expected to benefit MRCB in that it would ease costs and improve the supply of materials for its construction and property development projects in 2009
Inet Research said MRCB was expected to announce its 3QFY08 results on Nov 25, and that the company's earnings for FY08 were not expected to be exciting given that a majority of development projects have been pushed back due to the volatile and uncertain market conditions.
"We have adjusted our earnings estimates to assume the postponement of revenue recognition from several new projects," it said.
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