Wednesday, July 6, 2011

MRCB rises on Brickfields job

KUALA LUMPUR: MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) shares edged up on Wednesday, July 6 after its subsidiary inked an agreement to undertake a RM128.7 million contract to upgrade Little India in Brickfields and build government quarters.

At 9.05am, MRCB added two sen to RM2.24 with 147,500 shares done.

MRCB's 70% owned Country Annexe Sdn Bhd had signed a privatisation agreement with the government and Syarikat Tanah dan Harta Sdn Bhd (Hartanah).

The agreement will see Country Annexe upgrading and beautifying Jalan Tun Sambanthan, Brickfields; develop the Pines Bazaar and build

212 government Class F quarters near Jalan Ang Seng. In return, Country Annexe will receive two pieces of land.

MIDF Research maintained its Neutral rating on MRCB with higher target price of RM2.54 based on sum-of-parts valuation.

'At this juncture we are maintaining our forecast for MRCB as details for the mixed development remain sketchy.

'Moving forward we believe MRCB will be one of the beneficiaries of the ETP projects. Further clarity over the 'River of Life' project development value and MRCB's actual role in Sungai Buloh RRIM land redevelopment will be the catalyst for any upside revision of the SOP valuation,' MIDF Research said in a note July 6.


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