(MRC MK/HOLD/RM1.76/Target: RM1.63)

MRCB continues to be in a high-growth mode for both its property development and construction businesses. Its recent MoU signing to collaborate on the development of Bandar Malaysia’s transport hub signals that the group is still hungry for growth. However, a key concern would be its high gearing (net gearing at 0.76x) which could trend up given its present huge landbanking commitments. Maintain HOLD with a higher target price of RM1.63. A good entry price would be RM1.40.

Source: UOB Kay Hian Research - 7 Apr 2017