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KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), which is up 15 sen to RM1.48 on Jan 28, is seen as a leveraged proxy to the construction and property sector.
At 3.33pm, MRCB rose 15 sen to RM1.48 with 9.35 million shares done.
The FBM KLCI is down 1.91 points to 1,263.86. Turnover was 676.48 million shares valued at RM915 million.
Hwang DBS Vickers Research (HDBSVR) said in recent report that MRCB's completion of its rights issue by 1Q2010 is a precursor to strategic land acquisitions.
"Besides the three sought after pieces of land [50-60 acres at Jalan Cochrane, 25 acres at Ampang Hilir and 3,400 acres at RRIM], we understand there is another 20 to 30 acres of land within the KL Sentral/Brickfields vicinity," it said.
It says MRCB is the strongest contender with monopoly of the maturing KL Sentral franchise with 12 acres remaining.
HDBSVR said consensus earnings for FY2010-FY2011, which is 19% to 22% below its own earnings forecast, has room for upgrades.
FY2010-FY2011 profits will be anchored by higher construction profits for KL Sentral as work is being ramped up for Lot A, 348, E and G and development profits from the impending sale of Lot E by end 1Q10 at a new benchmark price of RM1,200 psf or cap rate of 6%.
"Buy MRCB for a leveraged proxy to the construction and property sector," it said.
