KUALA LUMPUR: Shares of MALAYSIAN RESOURCES CORP [] Bhd (MRCB) bucked the overall cautious market as investors were positive on the bright earnings outlook.
At 3.47pm, it was up four sen to RM2.57 with 7.10 million shares done.
However, the 30-stock FBM KLCI fell 3.23 points to 1,554.78. Turnover was 650.89 million shares valued at RM1.03 billion. There were 246 gainers, 499 losers and 257 stocks unchanged.
OSK Research said its recent meeting with MRCB's management reinforced its positive view on the company's bright earnings prospects and positive news flow.
'While we maintain our FY11 numbers, we have raised our revenue and earnings forecasts for FY12 by 10% and 14% respectively after taking into account higher property development revenue.
'Although we maintain our Trading Buy recommendation, our fair value is however raised from RM2.58 to RM3.13 after making major adjustments to our sum-of-parts revised net asset value (RNAV) valuation,' it said.
OSK Research said the news flows so far this year has been rather favourable for MRCB.
These included its acquisition of land in Setapak, the land swap deal with the government, as well as news related to the River of Life (ROL) project.
'We believe that positive news will continue to flow for the rest of the year and 2012, especially those related to potential land deals and the possibility of winning major CONSTRUCTION [] contracts,' it said.
OSK Research said with the property development in Parcels C&D of Lot G expected to be completed by 2012, the earnings momentum of its property development projects at KL Sentral would be sustained.
This would be underpinned by the recent launch of a strata office development in Lot B, for which the take up has reached 60%. MRCB was expected to launch its luxury condominium project in Lot D by the end of 2011 at an estimated GDV of RM1.4 billion.
'With the limited supply of residential units in KL Sentral, we believe this development should achieve a reasonable take-up rate that is similar to that for the recently launched St Regis Residences in Lot C, which is 50% taken up,' it said.
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At 3.47pm, it was up four sen to RM2.57 with 7.10 million shares done.
However, the 30-stock FBM KLCI fell 3.23 points to 1,554.78. Turnover was 650.89 million shares valued at RM1.03 billion. There were 246 gainers, 499 losers and 257 stocks unchanged.
OSK Research said its recent meeting with MRCB's management reinforced its positive view on the company's bright earnings prospects and positive news flow.
'While we maintain our FY11 numbers, we have raised our revenue and earnings forecasts for FY12 by 10% and 14% respectively after taking into account higher property development revenue.
'Although we maintain our Trading Buy recommendation, our fair value is however raised from RM2.58 to RM3.13 after making major adjustments to our sum-of-parts revised net asset value (RNAV) valuation,' it said.
OSK Research said the news flows so far this year has been rather favourable for MRCB.
These included its acquisition of land in Setapak, the land swap deal with the government, as well as news related to the River of Life (ROL) project.
'We believe that positive news will continue to flow for the rest of the year and 2012, especially those related to potential land deals and the possibility of winning major CONSTRUCTION [] contracts,' it said.
OSK Research said with the property development in Parcels C&D of Lot G expected to be completed by 2012, the earnings momentum of its property development projects at KL Sentral would be sustained.
This would be underpinned by the recent launch of a strata office development in Lot B, for which the take up has reached 60%. MRCB was expected to launch its luxury condominium project in Lot D by the end of 2011 at an estimated GDV of RM1.4 billion.
'With the limited supply of residential units in KL Sentral, we believe this development should achieve a reasonable take-up rate that is similar to that for the recently launched St Regis Residences in Lot C, which is 50% taken up,' it said.
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