Monday, January 10, 2011

RHB Research ups MRCB FV to RM2.65

KUALA LUMPUR: RHB Research Institute has raised MALAYSIAN RESOURCES CORP [] Bhd (MRCB) Fair Value from RM2.48 to RM2.65 and is maintaining a Trading Buy.

It said on Monday, Jan 10 it was raising the FY12/11-12 net profit forecasts by 21%-22% each as it now assumes MRCB to secure RM2 billionn 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 has quoted The Edge weekly 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.

'Assuming a 50:50 equity structure, 10% PBT margin and 25% tax, a 50% share of the RM8 billion contract will fetch RM300 million nominal net profit, translating to 22 sen per MRCB share,' it said.


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