Buying MRCB - felicity
Author: Tan KW | Publish date: Thu, 31 May 2018, 10:25 AM

Wednesday, May 30, 2018

The day to day announcement of cancellation of projects have spooked the market so much so that I feel there has been certain stocks being oversold quite a lot.

One of the example is MRCB which had just had a fund raising late last year. From that exercise, I think what the investing community has been thinking of MRCB is that it is about the HSR project alone.

To be fair, the fund raising is not purely for HSR but as per my article earlier, it is part of its reorganization exercise where it cures its balance sheet and at the same time refocus. MRCB has gone from owning many parcels of land that has lower GDV to larger projects where each GDV is much larger.

Key among them are the MX1 project which is the city center project on Kwasa Damansara, Bukit Jalil etc. Many of these projects are private projects which have been secured.

Through several exercises, MRCB had raised close to RM3 billion over the last 6 months and those would have improved its balance sheet, while having larger order books.

As a result, I have sold Tropicana which does not get impacted during the bloodbath and bought MRCB.


Posted by felicity at 10:57 AM
http://www.intellecpoint.com/2018/05/buying-mrcb.html

tml huarr!

suddenly contra kaki cut lost.

0.615

0.61 coming

i thnik worse is over after hsr cancel.
coming is good new compensation of edl.
Tun M said all must follow law. PH govermemt will pay the compensation. loke PH goverment must pay compensation to Singapore.

mrcb NTA 1.10

0.605

0.60

use the fund to buy mrcb

sold maybank that collected yesterday.

Malaysian Resources Corp - Cancellation of KL-SG High Speed Rail
Author: kiasutrader | Publish date: Wed, 30 May 2018, 10:24 AM

It was reported that Malaysia is looking to drop the KL-SG HSR project. It is a negative surprise for MRCB and its consortium partner GAMUDA, as they will no longer have the PDP role for the project. No changes to FY18-19E earnings. Maintain OUTPERFORM with a lower SoP-driven Target Price of RM0.900 (previously, RM1.15).

News. It was reported by various media that the Prime Minister of the newly formed government of Malaysia, Tun Dr Mahathir Mohamad, indicated that Malaysia is dropping the plan for a high-speed rail link between Kuala Lumpur and Singapore.

Negative surprise to MRCB and GAMUDA, as this decision will cause them to lose their PDP role. To recap, the PDP role was awarded to GAMUDA and MRCB back in 5th April 2018, which we anticipate c.RM26.0b worth of works for their portion in the Northern region. However, we believe that the government’s swift decision may be a blessing in disguise for GAMUDA and MRCB as minimal work/cost been incurred for the project as it is still at preliminary stage.

Outlook. In the mid-to-near term, MRCB’s remaining external construction order-book stands at c.RM5.2b, and coupled with c.RM1.7b unbilled property sales, these numbers will provide the group at least four years of earnings visibility. Going forward, management is looking for more land banking opportunities and sales target of RM1.0b for FY18 backed by its previous launches, i.e. Sentral Residences and 9 Seputeh. Construction and property division aside, management remains hopeful to dispose its EDL highway in FY18.

Estimates unchanged. Despite the news of cancellation of HSR, we make no changes to our FY18-19E earnings, as we have yet factored it into our FY18-19E earnings given that we had been expecting the construction works to only kick off in 2020.

OUTPERFORM maintained. Reiterate OUTPERFORM on the stock with a lower Target Price of RM0.900 (from RM1.15) after removing HSR PDP from our valuation and widen our property RNAV discount to 68% inline with sector average (previously, 50%), which we had previously assumed 5% PDP fees on the back of project value of RM26.0b. Nonetheless, we remain positive with MRCB’s prospect of the potential sale of EDL highway, which would be a catalyst for the stock. Our TP implies FY18E PBV of 0.9x which is right above its through level of 0.7x since 2009, and we believe that it is justified given its improving earnings and the potential disposal of EDL highway.

Downside risks to our call include: (i) weaker-than-expected property sales, (ii) higher-than-expected administrative cost, (iii) negative real estate policies, and (iv) tighter lending environment.

Source: Kenanga Research - 30 May 2018

mrcb only 20% gov projects.

profit up 149%

result better q to q

buy or sell now. no risk no gain!

0.585

0.58 now

bingo bought again @0.57

bought some at 0.565

PH keep money and no spending. no development.
no ong! sharemarket drop.....

if drop to rm0.20 sell underwaear to buy..

please drop to rm0.20 where some sifu said.
good to buy at rm0.20

cancel hsr will push up mrcb share.

Mrcb going to up after good result out next week.

buy again at rm0.68

i also too fat to run. sarah, samuel , we at same ship.

yes.samuel, hope we win money here. this is good stock. but market not favarable to contruction stock.

manage to buy maybank.at 10.16

sold at 0.72 and buy back at 0.69

manage to buy same @0.69

panic selling at 0.35

tabung haji 22 may buy again 1,000,000

buy again today.
DONT PANIC!!
MRCB ZERO GEARING CAMPANY...
AFTER DISPOSE EDL AND MENARA CELCOM.

Good assets at bukit jalil, cyberjaya, kl sentral..
buy more....

please drop to rm0.50

please drop to rm0.50!!!
I want buy more...
if drop to rm0.50 many very happy.

please drop to rm0.50!
please!

up0.005

tabung haji
21 May 2018
1,000,000
Acquired

please down to rm0.50
please!
look like strong footing for mrcb,
market down 30 points.
It still very stable

please buy more !!!
huarrr!!!

huarrr! price up tml.
target 0.80 tml.

HSR and ECRL under review now.

Rm 0.50 buy buy buy

tabung haji
18 May 2018
1,000,000
Acquired

please drop to rm0.50
please!!!

kwsp
17 May 2018
3,000,000
Acquired

@win118 whatare good new coming?

profit this q come from lrt3 same as Gkent. Gkent this q result up due to lrt3?

please down to rm0.50
please.
i all in....