KUALA LUMPUR: Shares of MALAYSIAN RESOURCES CORP [] Bhd (MRCB) and EKOVEST BHD [] advanced in early trade on Monday, Jan 10 on expectations of securing a RM8 billion Klang River project.
At 9.25am, MRCB was up 12 sen to RM2.34 while Ekovest added 24 sen to RM3.20. The FBM KLCI was up 2.21 points to 1,574.42. Turnover was 319.36 million shares valued at RM235.49 million. There were 339 gainers, 119 losers and 187 stocks unchanged.
RHB Research Institute had quoted The Edge as reporting that MRCB, via a joint venture with Ekovest, was 'on the verge' of being awarded the clean-up job of the KL side of the Klang River worth RM8 billion.
RHB Research raised MRCB's Fair Value from RM2.48 to RM2.65 and was maintaining a Trading Buy.
It raised the FY12/11-12 net profit forecasts by 21%-22% each as it now assumes MRCB to secure RM2 billion worth of new contracts per annum (vis-''-vis RM1 billion to RM1.5 billion previously), given the even better prospects of it winning new CONSTRUCTION [] jobs.
RHB Research said the RM8 billion clean-up contract, assuming a 50:50 equity structure, 10% profit before tax margin and 25% tax, 'a 50% share of the RM8 billion contract would fetch RM300 million nominal net profit, translating to 22 sen per MRCB share'.
At 9.25am, MRCB was up 12 sen to RM2.34 while Ekovest added 24 sen to RM3.20. The FBM KLCI was up 2.21 points to 1,574.42. Turnover was 319.36 million shares valued at RM235.49 million. There were 339 gainers, 119 losers and 187 stocks unchanged.
RHB Research Institute had quoted The Edge as reporting that MRCB, via a joint venture with Ekovest, was 'on the verge' of being awarded the clean-up job of the KL side of the Klang River worth RM8 billion.
RHB Research raised MRCB's Fair Value from RM2.48 to RM2.65 and was maintaining a Trading Buy.
It raised the FY12/11-12 net profit forecasts by 21%-22% each as it now assumes MRCB to secure RM2 billion worth of new contracts per annum (vis-''-vis RM1 billion to RM1.5 billion previously), given the even better prospects of it winning new CONSTRUCTION [] jobs.
RHB Research said the RM8 billion clean-up contract, assuming a 50:50 equity structure, 10% profit before tax margin and 25% tax, 'a 50% share of the RM8 billion contract would fetch RM300 million nominal net profit, translating to 22 sen per MRCB share'.
No comments:
Post a Comment