MRCB active, rises 5.17% on higher target price, positive outlook

KUALA LUMPUR (Jan 3): Shares in Malaysian Resources Corp Bhd (MRCB) rose 5.17% in active trade this morning after CIMB IB Research maintained its “Add” rating on the stock at RM1.16 with a higher target price of RM1.31 (from RM1.19) and said it was more upbeat on MRCB’s infra and highway divestment prospects this year.

At 9.10am, MRCB rose 6 sen to RM1.22 with 12.62 million shares tarded.

In a note Jan 2, the research house said a mutual termination of the EDL concession appears under way.

It said although the pricing is still unknown, the termination would reduce debt significantly, by some 25%.

“The group’s RM2.9 billion jobs in tender remain understated, in our view. FY19-20F EPS could almost double if it secures the HSR PDP scope via Gamuda Bhd-MRCB JV (50:50).

“Rail contracts newsflow in 1H18 could lift sentiment and further catalyse the stock.

“Remains an Add with a higher target price (10% RNAV discount),” it said. — theedgemarkets.com

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