MRCB - Triumphs in LRT3 race
Author: kiasutrader | Publish date: Mon, 7 Sep 2015, 10:16 AM

- We maintain our BUY call on MRCB with a fair value of RM1.65/share on an unchanged 40% to its NAV. MRCB announced that it has received a letter of appointment from Prasarana Malaysia to act as the Project Delivery Partner (PDP) for the Klang Valley LRT 3 (LRT3) project under a 50:50 JV with George Kent (Malaysia) Bhd.

- The LRT3 project (36km) runs from Bandar Utama to Klang before terminating at Johan Setia in Klang. Earlier reports indicated that this new line is expected to cost ~RM9bil (targeted completion: 2020)

- The award validates our earlier conviction of the MRCBGeorge Kent JV’s status as a frontrunner for the LRT3 PDP role. Our optimism stemmed from the duo’s combined experience in railworks. MRCB is the developer of the KL Sentral Transport Hub, and is exporting its franchise in Penang via Penang Sentral.

- The group is also currently undertaking several LRT packages under the Klang Valley LRT Line extension worth a combined RM1.2bil. These are:- (i) Ampang Line Package B – main facilities & segmental box girdles [SBG] (RM994mil); (ii) Kelana Jaya Package B SBG (RM77mil); and (iii) LRT stations 6&7 (RM88mil).

- George Kent had won a system works job for the Ampang LRT line extension last July together with Lion Pacific. From our channel checks, the JV trumped six other shortlisted candidates for the PDP award.

- While we have lowered our FY15F net profit to account for some timing differences, our NAV is largely intact. Even without accounting for the LRT3 PDP, MRCB’s new contract wins YTD of RM643mil has already surpassed our previous assumptions of RM300mil.

- Assuming a contract value of RM9bil (MRCB’s 50% stake: ~RM4.5bil), this new job could further boost the group’s total new contracts achieved YTD to ~RM5.1bil and bump up its external order book to a record RM6bil. This would undoubtedly boost MRCB’s future construction prospects going forward.

- Based on:- (i) MRCB’s effective stake in the PDP (~RM4.5bil); (ii) PDP fee of 5% (vs. 6% for the MRT Line 1 project); and (iii) duration of five years (2016-2020), we estimate the LRT3 PDP contract to bump up MRCB’s FY16F/17F core net profit by 21%/35%. Its fair value will rise by ~6% to RM1.75/share (NPV@7%).

- We have not assumed any contributions from the LRT3 project pending a definite agreement to be executed between the MRCB-George Kent JV and Prasarana. The stock is currently trading at a steep 64% discount to its NAV.

Source: AmeSecurities Research - 7 Sep 2015

Macam mana anybody has seen any revised new MRCB target price by any banks ke?

Bank I belum lagi

Anti debt u ada ada saja la What if? what if.. everyday u takut tertanya tanya what if the sky falls down ke?? lol

MRCB dapat tender maksudnya can deliver la. MRCB ada experience dalam bidang ni.

Kalau capai SMA 50d should move higher

http://klse.i3investor.com/servlets/anpth/1099823.jsp

Sama sama naik dengan MRCB

Short term TA punya target berapa agaknya?? RM 1.18 then 1.25??

Now tahula kita kenapa harga keep dropping dulu. Big sharks have been collecting

http://www.thestar.com.my/Business/Business-News/2015/09/03/Shot-in-the-arm-for-Destini/?style=biz

Ya Destini dapat contract dari MOD, MOF pula jadi second largest shareholder. Private GLC?

Beli sikit dan simpan, tak salah

Air_Asia u macam know cerita JOBSTREET ada untung besar kat JOBSTREET?

Dulu all JOBSTREET shareholders pun bukan main takut lagi but yang berani beli semua untung later

Not mandated to invest or mungkin ke Wellington facing big redemption by its investors ?

Dulu yang disebut sebut was that the foreign fund was not mandated to invest in a PN 17 company sebab selepas special dividen yang besar JOBSTREET mungkin PN17

Alex that is why I day buang buang buang jer like JOBSTREET dulu tak kira harga but when they stopped all JOBSTREET investors yang beli big profit later.

AA ada bagi projek kat Destini I dah beli Destini WA.. AA kelihatan cantik too today.

I lihat cara the major foreign shareholder is selling remind me JOBSTREET dulu

JOBSTREET dulu pun buang buang buang macam ni like it is free..

I dulu jual 90 cents lebih now just 59 cent

Syarikat ni kan jadi a mini Boustead Heavy. Banyak MOD contracts.

Yang ni really jatuh teruk ya. Dulu ada yang invite to buy bila 1.30.... now 40% cheaper

The Singaporean government has told its people to be “wary” about the Johor property market due to an oversupply of houses, according to reports from the city state.

“That might reduce Singaporeans’ appetite for Johor properties,” says an observer.

I read this in newspapers; betul ke Calvin??

3.90 tu TP ikut Kenanga la

Above 20 cents tu actually for warrant. I labur warrant.

Nampak ok now TP berapa?? Can still buy or not?

Ok la Calvin I turut ikut je you queue kat 80 sen. I pun banyak cash lagi

Counter tersayang... turut jatuh teruk

I dah sold semua above 20 cents. Now tunggu rezeki

I tengok cavintaneng pun harap can buy at 80 cents je... calvintaneng kan very excited about Iskandar dulu??

Ini co jatuh teruk ya. Nasib baik I tak beli bila price 2.30.

I baca China stock markets drop very bad semua investors kat sana got burnt teruk teruk sebab guna margin financing.

Will China investors ni cancel their bookings or even sell their properties in Iskandar to top up margin calls??

I ingat dulu bila orang Middle East cancelled their investment in Iskandar, Iskandar terus terbuntut for 10 years.

Jangan jangan history repeat itself kena wait for 10 years again Mati la

Dah lama tak hujan kat Klang Valley Azmin patut buat artificial rain dulu Panas tak tertahan

Problem air belum selasai dah terbengkalai dia sendiri...

Jangan jangan Azmin Menteri Besar pun tak last for long

Terima kasih OTB

Kalau possible kongsi the finer points of using margin financing too thanks

ding dong I baca from tu value investment forumer yang active kat 13, semua yang u cakap tu tak kira tak apa penting asal company has value.

Zelan has successfully turnaround and Meena alone profit sudah ok sudah ada value.

http://klse.i3investor.com/blogs/undervalue/78054.jsp

According to ni PE 8 sudah 0.91 sekarang baru 0.35

Kc I think you dah confuse market risk and finacing risk in Shanghai case la

Terima kasih la OTB for sharing on margin financing

I suppose cut loss is important too betul??

Is it all about managing risk la

Kc siang malam do calculations buat apa?? To manage risk la to reduce risk la

Kalau OTB can manage risk reduce risk bila guna margin financing I dont see what is wrong with using margin

Loan tu... leverage kalau pandai guna rezeki berganda. But risk too la

Think lebih baik kalau ask OTB how he manage then say loan not good

Maybe OTB can teach a bit??

Kan banyak yang complain cannot get loan?? Jadi bukan senang dapat bank loan

Kan before give loan bank will ask for project return, cashflow projection macam macam lagi??

Kalau bank approve the loan kan mean ok la?? Return positive cashflow cukup??

Ni jatuh teruk mesti kerja big fund ikan bilis bukan senang nak push up

Kalau ada fund from MMC Zelan pasti dapat banyak PFI projects

Government has no fund for projek sekarang so if private sektor can get the financing for the project pasti dapat

Berapa pasti ke 1.10?

Yes nampak promising

Ya la masuk longkang b4

But now turnaround. Market drop tapi dia tak drop, esok bila market ok nanti fly la

After listing Malakoff, MMC banyak cash la.

Kalau Zelan perlu wang for PFI projek with high margin can get from MMC la. Margin nanti lagi tinggi lagi. .

Baru perasaan bila nampak kat top 10.

The price sudah drop teruknya from around 1.20+ bila ks55 recommend to buy... kenapa ni?

PFI projects, Private Finance Initiative project.

Margin bagus upto 12% according to MD. After loan all dah bayar in 3 to 4 years margin lagi bagus

Zelan buy low sell high. Jangan tamak sangat ada la rezeki...

1 MP.... WHOLE CONSTRUCTION SECTOR WILL BENEFIT AND WILL BE RERATED

In terms of beneficiaries, by large, we reckon the whole sector will benefit in general leading to a sector’s rerating. This is historically backed by the stellar performance of KL Construction Index after the government announced both 9MP and 10MP in 2006 and 2010, respectively.

CONSTRUCTION - Get Ready For 11MP Booster
Author: kiasutrader | Publish date: Fri, 3 Apr 2015, 11:15 AM

We reiterate OVERWEIGHT on the Construction sector. Lending support to our bullish view is the announcement of 11th Malaysia Plan (11MP), in less than two months, which is crucial being the last leg of the country’s vision to become a high-income nation in 2020. It is also the last 5-year chapter of the Economic Transformation Programme (ETP) that was announced back in 2010. Hence, we believe the government will most likely announce remaining projects that are yet to be implemented in ETP so far in the 11MP announcement. In terms of beneficiaries, by large, we reckon the whole sector will benefit in general leading to a sector’s rerating. This is historically backed by the stellar performance of KL Construction Index after the government announced both 9MP and 10MP in 2006 and 2010, respectively.

Among the mega projects we expect the government to announce in 11MP are: (i) KL-Singapore High-Speed Rail (RM40.0b), (ii) Kampung Baru Redevelopment (RM61.0b), (iii) Bandar Malaysia (RM50.0b), (iv) MRT Line 2 and 3 (RM50.0b), new highways (RM20.0b), and LRT3 (RM9.0b). While all these mega projects may not be executed immediately in the near-term, we could still see more job flows in the next 3-6 months. Above all, given the mixed set of results in the latest reporting quarter, we continue advocating investors to be selective, i.e pick contractors that: (i) has strong orderbook, (ii) face minimal earnings risk i.e high probability of meeting new orderbook replenishment expectations and sustainable margins, (iii) will benefit from the news/contract flows in 2015, and (v) have compelling valuations.


Getting ready for 11MP. Prime Minister is expected to announce 11MP in May 2015. Hence, it is now less than 2 months away to the announcement. The 11MP is crucial for the country as it is the last leg of the country’s dream to become a highincome nation in 2020. It is also the last 5-year chapter of the Economic Transformation Programme that was announced back in 2010. Hence, we believe the government will most likely announce the remaining projects that have yet to be implemented in ETP so far such as: (i) KL-Singapore High-Speed Rail (RM40.0b), (ii) Kampung Baru Redevelopment (RM61.0b), (iii) Bandar Malaysia (RM50.0b), (iv) MRT Line 2 and 3 (RM50.0b), new highways (RM20.0b) and LRT3 (RM9.0b).

Source: Kenanga Research - 3 Apr

I think stable la... You tak baca "Zelan eyes more PFI projects" kat Focus Malaysia ke??

MD cakap tu International Islamic University Malaysia Gambang compus project bila ok nanti Zelan kan dapat RM 77m per annum every year for 20 years.

Zelan mahu more lagi PFI project sebab project macam ni have 12% profit margin after financial cost.

Ini kali tak jadi. more and more dah kena sangkut.... makin susah