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Author: Tan KW   |   Latest post: Sun, 25 Feb 2018, 03:56 PM

 

MRCB is into something really BIG? - felicity

Author:   |    Publish date:


Friday, January 19, 2018

 
 
Seldom I see exercise done in this manner. And seldom an organization can do it at this scale. After raising about RM400 million a year ago in three tranches of private placement - expanding its share base by 20%, it does a rights issue in less than a year.

Back in November / December last year, MRCB raised additional funds at 1 for 1 rights at 79 sen per share. My question is why?

Although felt like not much, MRCB had a major fund raising exercise over a period of 18 months - as mentioned above first a 20% private placement, then rights issue which raised RM2.26 billion, followed by sale of land to EPF for RM1.144 billion and probably another big one in the sale of EDL i.e. Eastern Dispersal Link for another RM1 billion or more. Confused?

I am. But this potentially signifies something really big may come on stream.

I am not one of those who think speculatively, but with a total add-ons of funds of potentially more than RM4 billion, it definitely does makes me turn around and look further.

Cash add-ons of RM3.9 billion (excluding EDL deal with the government)
To understand their exercises, perhaps let me list down one by one:


  1. private placements of 20% raising RM408 million - which includes the MD's additional subscription, Bank Rakyat, Tabung Haji.
  2. sale of 80% of the land which MRCB gotten for refurbishing the Bukit Jalil stadium to EPF. This amounts to RM1.144 billion. Yet to compete, but potentially will be done in near future.
  3. the biggest one which is rights issue raising RM2.257 billion at 1 for 1. Obviously the MD and EPF took up the shares.
  4. Sale of Setapak land for RM100 million to Tabung Haji.
  5. negotiation with government to settle the EDL project in which case the toll collection has been stopped since 1 Jan 2018. One has to note that this is one of the toll highway which is loss making, hence the sale could be a goo thing for MRCB.
What are other major projects which the company has managed to secure or in the process of finalising?
 
  1. MRT2 projects at Cyberjaya City valued at RM148 million
  2. Cyberjaya City project which it will invest RM229 million for a controlling stake. See the link with the MRT2 project.
  3. Big one - Kwasa Damansara which it will subscribe for probably the most premium land (commercial center) there for 70% stake - project called MX1 - costing RM737.88 million.
  4. project delivery partner for LRT3 with George Kent - the project is a RM9 billion project.
  5. partnership with Gamuda to bid for High Speed Rail project - which I think the partnership has a fairly good chance of winning considering that Gamuda has experience in the MRT1 and MRT2 while as mentioned MRCB is working on the LRT3 with another partner.
 
 
Although it is still a big question, unless with the reason of improving the gearing of MRCB, I like the fact that the above exercises focuses on what the group clearly wants to own and what it wants to dispose. Of course, only a few companies can do the way they want it to. For example, not many would be able to have the chance to negotiate and dispose the Bukit Jalil land to EPF and have a fairly good deal out of it.
 
The group in the last 18 months exercise has managed to focus on three things.
 
  1. Get the large scale projects like PDP for HSR, LRT3, MRT3, DASH Highway;
  2. push for development into larger mixed development like Kwasa and Cyberjaya;
  3. sale of less strategic land while still be able to keep the construction work. The sale of land at Bukit Jalil and Setapak does not mean they are out of the projects but yet they are construction partner for these projects. I think this is sweet. 
In looking at the past, of course MRCB is not very attractive. Its margin was low and gearing was quite high - that gearing problem is almost being solved. Still, because of that I am not able to figure out how good is the group able to bring financial benefits to its shareholders.
 
But I like the exercises so far.
 
 

 

http://www.intellecpoint.com/2018/01/mrcb-is-into-something-really-big.html

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Labels: MRCB

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Chart Stock Name Last Change Volume 
MRCB 1.12 -0.02 (1.75%) 10,384,200 

  Be the first to like this.
 
20/01/2018 16:42
Hitman yeah no big..but huuuuggggeeeeeeee(Donald Trump)
20/01/2018 16:51
HIBISCUS SaiLang with TP RM4 Small only, calvintaneng sohai invest 3% of his capital enough to privatise the whole MRCB
20/01/2018 16:59
calvintaneng THUMBS UP TO THIS POST!!!

CLAP!

CLAP!!

CLAP!!!

Coming soon & ready soon

1) Sale of Menara Celcom by MRCB to MQReit for Rm680 Millions

2) Possible sale of Ascott Hotel for another Rm180 Millions

3) Half a Billion Ringgit Worth of Prime Real Estate Lands Surrounding KL Sentral.
This one has 6 connecting rails fanning out in the Very Heart of Brickfield/Bangsar
A literal Gold Mine Field.

4) All these CASH RAISING POINTS TO?

GUESS?

PDP FOR "BANDAR MALAYSIA" IF SECURED AT RM160 BILLIONS WITH 5% FEE MRCB STANDS TO GAIN Rm8 BILLIONS!!!

Of course MRCB Might partner with a China Co. for 50/50% just like Partnering With Gamuda for PDP of HSR. In that case a Rm4 Billions windfall
20/01/2018 17:37
calvintaneng See KL Sentral served by 6 Connecting MRT/LRTs

Half a Billion Ringgit Worth of Prime Real Estate Lands Surrounding KL Sentral.
This one has 6 connecting rails fanning out in the Very Heart of Brickfield/Bangsar
A literal Gold Mine Field.

http://www.klsentral.com.my/conn_main.aspx
20/01/2018 17:55
HIBISCUS SaiLang with TP RM4 Calvin sochai 口水多过茶
20/01/2018 17:56
SarifahSelinder Calvin gomen dah tukar cara nowadays x main PDP lagi. Semua turkey basis. Contractor need own fund.
20/01/2018 18:20
calvintaneng SarifahSelinder Calvin gomen dah tukar cara nowadays x main PDP lagi. Semua turkey basis. Contractor need own fund.
20/01/2018 18:20

Mrcb bukan contractor lah

Buat paperwork sahaja (senang senang kerja)

Dulu MRCB PDP untuk Kwasa Damansara

https://www.bharian.com.my/node/157767

Sekarang ada PDP Hsr

https://www.nst.com.my/business/2017/11/308458/mrcb-and-gamuda-join-forces-bidding-be-pdp-kl-singapore-high-speed-rail


Akan datang ada Bandar Malaysia
https://www.thestar.com.my/business/business-news/2017/03/28/rhb-research-upbeat-on-mrcb-prospects-with-bandar-malaysia/

Gomen kasi wang MRCB macam kasi Amanah Saham Bumi(ASB) untuk Bumi. Semua wang macam percuma masuk pocket!
20/01/2018 18:51
Fabien Extraordinaire calvin...what happen to BJCorp???
20/01/2018 20:42
HIBISCUS SaiLang with TP RM4 CALVINTANENG, the king of finding undervalued “rubbish” stocks, and as a former car sales man, a consummate promoter (this is not a compliment). I still think it is very unethical to promote stocks like he does
20/01/2018 20:52
calvintaneng Calvin King of Finding Undervalue Rubbish (Trash) Stocks?

See Calvin's write up on

ONE MAN'S TRASH (Rubbish) IS ANOTHER MAN'S TREASURE

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/134447.jsp


Posted by Fabien Extraordinaire > Jan 20, 2018 08:42 PM | Report Abuse

calvin...what happen to BJCorp???


Fabien, After reversal of impairment from Great Mall Bj Corp will spring up. So Bj Corp's time will come.

As MRCB is now the Focus GE14 Election Bull Run.. .... Govt will spur it up just like it did with DRB
20/01/2018 21:20
Patron John Lu u better don't trigger king of terbalik lah. later he will repeat his JAKS story for 321568th time !
20/01/2018 21:28
Patron whereas Perisai he will pretend he nvr recommend la.. we all know this old fark from kiasuland.
20/01/2018 21:31
Vince Sinclair Don't be misled, MRCB is no Nestle, Dutch Lady, BAT. Not even Oldtown. It is not even Top Glove or Hartalega or Airasia. MRCB is Not near.
20/01/2018 22:25
calvintaneng Vince,

Calvin is perfectly happy if MRCB can perform like DRB. Success is making small correct steps repeatedly.
21/01/2018 01:12
China Big Fund Manager ya, the next gamuda, buy more, tp 5.0.
21/01/2018 13:31
calvintaneng Not forgetting Mrcb also got spare fuel for its 10,000 miles journey of growth!

Mrcb also own MQuil Reit...

see


DRB Versus MRCB - Top Two Beneficiaries of 2017 BUDGET (2 ...
Jan 3, 2018 ... Published Date: Jan 03, 2018, Author: calvintaneng,

Title: DRB Versus MRCB - Top Two Beneficiaries of 2017 BUDGET (2 RESERVOIRS Of Wealth)

Calvin Tan (Part 2) ... Not forgetting that MRCB owns MQReit (27.89%) which is worth over Rm380 millions.

MRCB might turn most of its TOD Assets into Reits one day. EPF has prepared Long Term Value Extraction from MRCB for shareholders just like ASB giving above average dividend of 9% to 10% to Amanah Saham Bumi (ASB) Unit holders.

https://fifthperson.com/11-things-i-learned-from-mrcb-quill-reits-2017-agm/

MQuil Reit by virtue of its Prime Prime Properties are 98% tenanted.

And TOD Assets like 7 Eleven in JB Sentral are tenanted at Rm50,000 a month compared to average shops of Rm4K to Rm5K only in less desirable areas.
21/01/2018 16:52
calvintaneng And another NEW REVELATION!

Qwek Leng Chan of Hong Leong Bank & Teh Hoong Peow of Public Bank also among Top 30 Holders of MRCB as well as Maybank & Cimb Bank

Funds from Uk, Swiss, Norway, Japan, Singapore & Australia as well as TOP WORLD FUND VANGUARD Are all holders in TOP 30 MRCB Shares

Sifu John Neff Windsor is a Branch of VANGUARD FUND

All these are BIG BOYS. Why Great Eastern Life Assurance also Bought Soooo Much MRCB Shares?

SURELY THEY ALL
"SEE" VALUE WHICH MANY ARE STILL UNAWARE!!
21/01/2018 20:17


 

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