MRC said that it expects to launch a mixed development with an estimated GDV  of  RM1.2bn-RM1.6bn  on  the  German  Embassy  Land  in  the  KLCC vicinity which it is acquiring for RM259.2m.  (Source: StarBiz)

Comments:  At a pretax margin of 15%, the estimated GDV of RM1.2bn  to RM1.6bn implies potential pretax profit of between RM180m and RM240m over  a  three-year  development  period.  The  proposed  acquisition  is expected to be completed in August this year and MRC has stated that it will  start  the  project  after  the  payment  of  the  remaining  90%  of  the consideration.

Maintain  BUY  rating  for  MRC  with  an  unchanged  RNAV-based  TP  of RM2.26.

Source: Affin Hwang Capital Research - 10 Apr 2015