Wednesday, December 7, 2011

RHB Research positive on construction sector, MRCB FV RM2.55

KUALA LUMPUR (Dec 7): RHB Research Institute has turned positive on the CONSTRUCTION [] sector as there is now even more urgency for the Government to expedite the roll-out of various public projects.

The research house said on Wednesday this move by the government to pump prime the local economy to shield it against the increased risk of the global economy slipping into a double-dip recession.

'For MRCB, an additional trading angle also comes from the strong likelihood of it being offered a dual role, i.e. project manager and developer, by parent Employees Provident Fund (EPF) in the redevelopment of the 2,680-acre Rubber Research Institute (RRI) land in Sungai Buloh.

'Also, a 60:40 JV between Ekovest and MRCB is poised to bag the beautification portion worth RM1bn of the initial phase of the River of Life project. Indicative fair value for MRCB is RM2.55 based on 'sum of parts',' RHB Research said.

No comments:

Post a Comment