KUALA LUMPUR (Dec 1): RHB Research Institute is maintaining its trading buy call on MALAYSIAN RESOURCES CORPORATION BHD (MRCB)with a fair value of RM2.55.
It said on Thursday that MRCB had secured the Perai River estuary rehabilitation (Phase 3) project worth RM40.3 million.
“The latest job has boosted its YTD new contracts secured to RM1.64 billion and outstanding CONSTRUCTION [] orderbook marginally from RM2.68 billion to RM2.72 billion,” it said.
RHB Research said assuming an earnings before interest and tax (EBIT) margin of 10%, the contract will fetch RM4 million EBIT over the contract period.
“Forecasts maintained as we have already assumed MRCB to secure RM2 billion worth of new jobs in FY11. Fair value is RM2.55. Maintain Trading Buy,” it said.
It said on Thursday that MRCB had secured the Perai River estuary rehabilitation (Phase 3) project worth RM40.3 million.
“The latest job has boosted its YTD new contracts secured to RM1.64 billion and outstanding CONSTRUCTION [] orderbook marginally from RM2.68 billion to RM2.72 billion,” it said.
RHB Research said assuming an earnings before interest and tax (EBIT) margin of 10%, the contract will fetch RM4 million EBIT over the contract period.
“Forecasts maintained as we have already assumed MRCB to secure RM2 billion worth of new jobs in FY11. Fair value is RM2.55. Maintain Trading Buy,” it said.
