MRCB announced that it has been awarded a RM197.4m contract from Johor Land to construct the 30-storey JLand Tower at Komtar JBCC, Johor Bahru.
Construction duration is for 24 months and scheduled for completion by Nov 2016.
First job win for the year. This recent award marks MRCB’s first contract win for 2014, after a lull period of 1 year. We estimate that this contract win would bring its orderbook to ~RM1bn (after accounting for estimated burn rate in 3Q), implying a decent 2.6x cover on FY13 construction revenue.
Gunning for incinerator job. Looking ahead on other potential job wins, MRCB (in a JV with Hyundai Rotem) is one of the 4 shortlisted parties for the waste-to-energy Kepong incinerator project. The 1,000 tonne per day incinerator is expected to cost RM800m.
MX-1 the ke y catalyst. Commencement of the MX -1 parcel in Kwasa Damansara, in which MRCB will have a 70% stake, is the next catalyst. The MX -1 parcel will perhaps be the most important component of the Kwasa Damansara development as it is the main town centre covering 64 acres with an estimated RM8bn GDV.
Source: Hong Leong Investment Bank Research - 14 Oct 2014
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