MRCB (1651) : AmResearch maintains Buy on MRCB, trims fair value to RM2.20
KUALA LUMPUR (Nov 19): AmResearch has maintained its Buy rating on Malaysian Resources Corporation Bhd (MRCB) at RM1.49 with a lower fair value of RM2.20 and said the slight tweak of its fair value takes into account a higher share base following the completion of MRCB’s acquisition of PJ Sentral Development Sdn Bhd.
In a note Wedneday, the reseacrch house said MRCB reported 9MFY14 earnings of RM49 million, which it said was a huge improvement from RM111 million losses in 9MFY13.
“Property earnings returned to the black at RM114 million, thanks to ongoing billings from QL Sentral and the Sentral Residences as well as maiden contributions from 9 Seputeh.
“Likewise, construction earnings shrugged off the legacy losses of last year to post a profit of RM44 million on an EBIT margin of circa 14%,” it said.
“We envisage more NAV upside moving into FY15F via the following:- (i) future development profits from PJ Sentral & Kwasa Damansara; (ii) potential monetisation of its prime commercial assets at KL Sentral, starting with Platinum Sentral; (iii) Penang Sentral; and (iv) selective construction bids,” said AmResearch.
At 9.35am, MRCB gained 2.68% or 4 sen to RM1.53 with 4.96 million shares done.
http://www.theedgemarkets.com/en/node/170470
KUALA LUMPUR (Nov 19): AmResearch has maintained its Buy rating on Malaysian Resources Corporation Bhd (MRCB) at RM1.49 with a lower fair value of RM2.20 and said the slight tweak of its fair value takes into account a higher share base following the completion of MRCB’s acquisition of PJ Sentral Development Sdn Bhd.
In a note Wedneday, the reseacrch house said MRCB reported 9MFY14 earnings of RM49 million, which it said was a huge improvement from RM111 million losses in 9MFY13.
“Property earnings returned to the black at RM114 million, thanks to ongoing billings from QL Sentral and the Sentral Residences as well as maiden contributions from 9 Seputeh.
“Likewise, construction earnings shrugged off the legacy losses of last year to post a profit of RM44 million on an EBIT margin of circa 14%,” it said.
“We envisage more NAV upside moving into FY15F via the following:- (i) future development profits from PJ Sentral & Kwasa Damansara; (ii) potential monetisation of its prime commercial assets at KL Sentral, starting with Platinum Sentral; (iii) Penang Sentral; and (iv) selective construction bids,” said AmResearch.
At 9.35am, MRCB gained 2.68% or 4 sen to RM1.53 with 4.96 million shares done.
http://www.theedgemarkets.com/en/node/170470
