Posted by johnny cash > 2014-04-19 23:40 | Report Abuse

Overall positive, kicking off its restructuring plans
A 27% uplift to RNAV, 13-25% increase in FY14-16 EPS. We are overall
positive on the REIT strategy as it will enable MRCB to 1) pare down its
borrowings gradually through the cash proceeds. The RM486m cash proceeds
will largely be used to repay the debt associated with Platinum Sentral. 2) It will
gain from the recurring REIT earnings from the 30-32% stake in the enlarged
QCT at RM15m-20m p.a. based on our estimate. The 13-25% EPS upgrades
only reflect the group's core earnings i.e. the impact of the interest savings and
new recurring income from the REIT, but do not include the impact of the net
gain on the asset sale of over RM300m from Platinum Sentral and DUKE.
In our revised RNAV we have 1) assumed a base case of a 12% reduction in the
group’s borrowings, 2) introduced the estimated RM1.6bn enlarged asset value
of QCT at a 32% stake, 3) imputed the RM228m cash proceeds and RM99.2m
gain from the disposal of Duke which was announced earlier, 4) factored in the
RM239m gain from disposing Platinum Sentral and 5) adjusted balance sheet
items. This raises its RNAV/share by 27% (53 sen) from RM1.97 to RM2.50.

Turnaround in prospects this year
The stock is worth a trade. Overall, this deal kicks off the group's planned
restructuring strategy following the kitchen-sinking exercise late last year. Our
conversation with management suggests that there are likely to be more asset
injections on top of Platinum Sentral, particularly involving MRCB's assets in
KL Sentral. There could be slightly over RM1bn worth of property assets that
can be spun off to further repay its borrowings and invest in new ventures
including new landbanks. Also, having an associate stake in a REIT (QCT)
secures stable recurring income, which partially offsets the volatility in its
construction earnings. We also expect other positive developments over the
course of 2014, including a likely favourable decision following PKNS's appeal
against the High Court's decision on the PJ Sentral M&A, the decision on the
tolling of the 100%-owned Eastern Dispersal Link (EDL) highway, possible new
REIT-related deals, tenders for the RRI Land development and construction
job flows. Please refer to our report on RRI Land which was released on 5 Mar
2014 (RRI Land looks too big to ignore)
We upgrade to an Add rating, with a higher target price of RM2.00.
Since our downgrade of the stock to Neutral in August last year, the share price
has fallen 13% from RM1.50 to RM1.31 as at end-2013. It further de-rated in
late 2013 following the RM167m provision made in its 3Q13 results. Though the
stock has already rallied 27% YTD, somewhat ahead of the announcement of
the deals, we still see value in the stock. In view of the likely positive newsflow
in the medium term and the positive expectations of the new management's
transformation move, we narrow the RNAV discount from 30% to 20%, in line
with Sunway. Based on our revised RNAV 0f RM2.50, our target price rises
from RM1.38 to RM2.00 (see Figure 4). We upgrade from Hold to Add.

CONTINUE

Posted by tjhldg > 2014-04-20 19:23 | Report Abuse

offload 35 % liau .. bal cun cun 1 container

Posted by zeeai > 2014-04-21 22:43 | Report Abuse

The positive thing is monetize whatever the MRCB available property est at RM2.5b. Only a handful, approximately RM1b that fits to be placed under REITs. Moving forward, apart from selling of current assets to generate revenue, there is no other project in the making. No new property launch and the construction division will not have any internally generated projects....

Posted by crawler > 2014-04-22 11:24 | Report Abuse

kwasa kuasa... :) cheers

Posted by zeeai > 2014-04-22 14:32 | Report Abuse

Being a company in EPF stable, MRCB should get a portion of the Sg Buloh land for development, but as at now no news yet with regards to MRCB involvement in the said development. Nothing.
MRCB situation is like MAS when Idris Jalal helming to the company.....looks rosy with various transformational program but actually its just assets stripping to show good return.....the fundamental i.e the core business is not moving. Trade with cautions with MRCB, it may go to 20 cents, just like MAS.

Posted by zeeai > 2014-04-22 15:20 | Report Abuse

weijian, If the price goes north, it is due to speculation and artificial demand. It will not last. Hit and run and not for long term. I has been monitoring this company fundamental, apart from disposal of assets nothing comes out of the transformational program. As for Penang Sentral supposed to be launched by year end, its purely to jack up the stock price. Land issue is far from settle...how to launch? The analysis posted by Johnny Cash mention of asset disposal....that's all.....STRIPPING OF ASSETS TO CREATE VALUE (CAN AHHHH)????

Posted by crawler > 2014-04-22 16:33 | Report Abuse

apa you tahu la zeeai..if you don't know refrain from making this type of comments. That only show you know nothing about MRCB.

Posted by crawler > 2014-04-22 16:33 | Report Abuse

shame on you!

Posted by Hong Hero > 2014-04-22 17:39 | Report Abuse

got no project in making? do some research dude.
kwasa land news will only announce on May, now is only April.
They will pare down their debt eventually to set up for bigger project.

Posted by shpok4574 > 2014-04-23 08:29 | Report Abuse

Crawler, everyone also got his own opinion. He may say it right or wrong. It doesn't matter, as long as we support you and MRCB.

Posted by zeeai > 2014-04-23 09:00 | Report Abuse

Hong Hero, For Kwasa Land the most MRCB will get between 200-300 acre. So many political company are for the land...they will divide into smaller pieces and distribute it. What big project in MRCB stable? PJ Sentral and Penang Sentral. PJ Sentral still hanging in court and I don't think PKNS will give it up easily. Penang Sentral (MRCB 49%, PHB 51%) land issue yet to settle. With DAP helming the state gov, being a fed GLC you think its so easy ahh.....Same like MAS,,,strip the assets, show good profit one or two years (due to assets stripping) then what.....Gapurna and gang will exit and MRCB share down to 20sen....

Posted by weijian > 2014-04-23 18:22 | Report Abuse

keep it for 20 years. Hidup UMNO! Lol

Posted by kkteng70 > 2014-04-24 08:42 | Report Abuse

may be he is right ? but as a construction or developer company if you have a very very intelligent and strong management team BUT that company do not have connection with government. DO you think they can reward contract ? Yes it can. but if you do have connection you are like MRCB or UEM

Posted by shpok4574 > 2014-04-28 16:14 | Report Abuse

MRCB towards south now

Posted by Vin Cullen > 2014-04-28 17:36 | Report Abuse

Almost 620 counter drop ~~ coz of UKRAIN WAR ~~
IS GOOD TO COLLECT MRCB AND MALTON ! :D

Posted by Mattew Chew > 2014-04-28 19:28 | Report Abuse

Vin, any reason why we should go to collect MRCB ?

Posted by Vin Cullen > 2014-04-28 23:19 | Report Abuse

1. Turn Profit this year
2. See who incharge now :)
3. Dark Horse In this year !
4. I prefer MRCB-WA
5. Alot Good news gonna bring this stock... merger Gapurna..QCAPITAL..EDL...etc..
6. UMNO COUNTER ~( Wont gonna dead ) Lowest RM1.24 ..Current RM1.60 plus foc 3 warrants++ every 10,000 lots of MRCB ~ !
Before FOC WARRANT! should be RM1.70++

Posted by angangang > 2014-04-29 09:42 | Report Abuse

drop again....

Posted by zeeai > 2014-04-29 13:45 | Report Abuse

Vin Cullen....you dreaming!

Posted by zeeai > 2014-04-29 13:49 | Report Abuse

Vin Cullen
1. Profit due to disposal of assets not from core operating business
2. Incharge now is green and the team that bring mrcb has left (all of them) and replace with green and non experience team from Gapurna who has not completed even a single building!
3. What good news?...except asset disposal!
4. Trade at your own risk and should be avoided like plague!

Posted by LuvLuv > 2014-04-29 16:52 | Report Abuse

To Cytew,Crawler,ACELEE,Hong Hero,Vin Cullen

MRCB and MRCB WA still intact?

Posted by davidlim07 > 2014-04-30 20:25 | Report Abuse

Doji for today..will it goes up or down on Friday? ? If down then not a good sign.

Posted by knight1 > 2014-05-01 18:16 | Report Abuse

MRCB is still good if trend is not broken. If it does, then we have problem.

Posted by ACELEE > 2014-05-02 09:22 | Report Abuse

Dear LuvLuv and friends.The MRCB and MRCB WA still a good buy due to facts posted by Vin Cullen and HongHero.

What we need is to wait for the easterly wind to realize.

Cheers

Posted by LuvLuv > 2014-05-02 09:33 | Report Abuse

Thanks ACELEE..Patient is the key to investment success. Have also added few in BIMB WA, and will consistently piling up and wait it to roll out after July.

Posted by zeeai > 2014-05-02 10:49 | Report Abuse

Careful there is no future for this stock. Price is supported b y EPF....they are going to dump it...

Posted by kennynam > 2014-05-02 11:35 | Report Abuse

Just hold and wait till end of May

Posted by Mattew Chew > 2014-05-02 14:48 | Report Abuse

zeeai, how do u know EPF is going to dump it? dun talk the cock.

Posted by kennynam > 2014-05-02 17:13 | Report Abuse

Any statement without factual support can be consider as talking cock

Posted by zeeai > 2014-05-02 21:35 | Report Abuse

Ha ha ha...if you are that naïve don't play shares and stock....you get burn...kennyman should invest in property....its for the naïve and safe bet!

Posted by tjhldg > 2014-05-02 23:56 | Report Abuse

kikikikii .. not cointainer liau ...sian liau

Posted by kennynam > 2014-05-03 09:03 | Report Abuse

If you aim for SAFE bet and worry of getting burn, I suggest you go for FD instead of stock market.

Posted by davidlim07 > 2014-05-03 16:32 | Report Abuse

http://www.theedgemalaysia.com/business-news/287907-highlight-edge-weekly-says-slowdown-in-construction-contract-flow-a-cooling-property-mart-could-trim-stock-picks.html

Posted by zeeai > 2014-05-04 08:01 | Report Abuse

MRCB is a dead stock....its stays there for sometime and follow MAS footsteps. What the new management do exactly like what MAS did when Idris Jala helm MAS. Get rid of good assets to show profit, improve the stock price for awhile and exit.....Idris Jala takes 3 years to do that, MRCB new mngt is much more efficient....will do it in 2 years.

MRCB assets that is on sale as well as sold since the new mngt takes the company....Duke highway, EDL, Platinum Sentral, Sooka Sentral, Nu Sentral, Menara Shell. Even MRCB Tech is up for sale. Any new project launches? None. Any new business in the core businesss? None. Some pieces of land that is ripe for development will be sold as well.

All these project are kept in MRCB during the previous mngt is to create a recurring cashflow and REITS it when its ready. No need to buy others REITS.

I have said enough. Please do your own research.

Posted by zeeai > 2014-05-04 08:03 | Report Abuse

Instead look KUB and PDZ. There may be someone or something brewing. It may follow Damansara Realty footsteps......

Posted by kkteng70 > 2014-05-04 21:59 | Report Abuse

zeeai.. First I would like to said no offence here. what you have comment here, like a bit anti MRCB. understand that this stock a government link stock. but is it that bad ?

Posted by shpok4574 > 2014-05-05 09:06 | Report Abuse

May be he try to accumulate it at bottom price, who knows?

Posted by zeeai > 2014-05-05 13:05 | Report Abuse

I am stated my opinion here. After some research on the new management (to determine worth investing or not), I discover the similarities with MAS. To certain extent it follows MAS on recovering the share price and exit. Another coincidence... is the Share Price....why it is being supported at RM1.60? It seems that the entry cost for the new mngt is at RM1.60. The price must be supported at that level.....the rest you can make it up.

Posted by zeeai > 2014-05-05 13:06 | Report Abuse

In normal circumstances GLC will be supported if it has some national interest to protect. MRCB has no project with National Interest.

Posted by kkteng70 > 2014-05-05 15:00 | Report Abuse

I see, may be you are right but I am sure MAS is much worse than this.

Posted by weijian > 2014-05-08 10:51 | Report Abuse

zeeai, why you are active all the time in this post since you're so disagree with this counter? curious........ You want to be the savior of Malaysian?

Posted by thinkstodo > 2014-05-09 13:23 | Report Abuse

ASSET ASSET ASSET ... ASSET GROW DAILY. WORTH FOR IT THEN SELL. GOOD SIGN .

Posted by thinkstodo > 2014-05-09 13:23 | Report Abuse

Bright Future.

Posted by thinkstodo > 2014-05-09 15:28 | Report Abuse

parents did not guide child to be bandit.

Posted by rongzhou > 2014-05-09 22:53 | Report Abuse

who know about the kesses damansara project? will MRCB get any contract?

Posted by zeeai > 2014-05-10 21:07 | Report Abuse

Weijian, I am active cos I hv invested in this company and I cant get out. For me to get out (wish I could) MRCB has to perform better but not hoodwinked us, the

Posted by zeeai > 2014-05-10 21:09 | Report Abuse

My sole intention is to ensure the mngt do the right thing so as to increase the price. As it is now I don't see any light in the new management.

Posted by zeeai > 2014-05-10 21:10 | Report Abuse

rongzhou, MRCB has nothing to do with kidex...

Posted by zeeai > 2014-05-10 21:12 | Report Abuse

What I heard yesterday from my grapevine in MRCB, the management intent to sells of the construction arm of MRCB as well as the MRCB IT business. Their plan is to retain MRCB as a pure property company.

Posted by thinkstodo > 2014-05-10 22:27 | Report Abuse

What is construction main course. *PROPERTY* What they need after construction to promote *IT* maybe to expand further.