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OSK: MRCB stands a good chance to secure some ETP projects

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) stands a good chance in securing some government projects under the Economic Transformation Programme (ETP), OSK Research says.

The projects mentioned by the research house were the River of Life project, the development of RRIM land in Sungai Buloh and Phase 2 of LRT extension project which are expected to begin this year.

In a research note on Thursday, Feb 10, it said the project to clean up and develop Klang river (River of Life project) was estimated to be worth around RM8 billion to RM10 billion with Phase 1 estimated at RM1 billion to RM2 billion.

For the RRIM land development, it said the masterplan was expected to come out by mid-2011.

"Other than RRIM, we also gather that MRCB is in talks with the government to jointly develop around 5ha to 6ha of land in Brickfields. MRCB is also in talks to acquire or jointly develop a sizeable prime land in the Petaling Jaya area," it added.

OSK Research also said it was turning more optimistic on the property outlook for KL Sentral and had raised its land value assumption for KL Sentral from RM1,280 psf to RM1,640 psf.

Meanwhile, the research house revised upward its fair value for MRCB shares from RM2.05 to RM2.58.

"With the sizeable upside, we upgrade our recommendation from 'neutral' to 'trading buy' at the target price of RM2.58." — Bernama

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