BROKER CALL - Malaysia's MRCB kept 'buy' on huge order book

BROKER CALL - Malaysia's MRCB kept 'buy' on huge order book - CIMB
12/06/2007 10:40:00
KUALA LUMPUR (XFN-ASIA) - CIMB Research has reiterated its "buy" call on
Malaysian Resources Corp Bhd (MRCB) as the firm could potentially emerge as the
best play for exposure to mega projects planned for Penang, and to overseas
ventures particularly in the Middle East.
Apart from the 1.2 bln rgt Penang Monorail and 1 bln rgt Penang outer ring road
(PORR) projects, MRCB could add another potential mega job -- the 1.2 bln rgt
new Penang international airport -- to bag three mega jobs in one state, CIMB
said.
The Penang monorail, the 9-bln-rgt Bakun power transmission project and more
overseas contracts are expected to drive MRCB's order book which currently
stands at 1.7 bln rgt, it said.
The company is targeting new contracts worth 1.5 bln rgt by the end of the
year.
There is speculation that MRCB will acquire a stake in Equine to participate in
the building of a new airport in Penang.
"We are surprised by this news and would take a slight positive view should it
materialise," the research firm said.
As for Saudi Arabia, MRCB has been working with several parties in the Middle
East on a potential transport hub, which may provide another big boost to
overseas contributions.
MRCB's 33-year toll highway concession for the Eastern Dispersal Link will
feature a new stream of recurring income by 2011, it added.
CIMB is keeping its target price of 3.15 rgt for MRCB.
At 10.36 am, MRCB was down 0.03 rgt or 1.20 pct at 2.46 rgt and Equine Capital
Bhd was off 0.02 rgt or 0.63 pct to 3.18.
(1 usd = 3.47 rgt)


Source: Osk Wirenews