Stock Name: MRCB
Company Name: MALAYSIAN RESOURCES CORP
KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call and sum of parts based target price of RM3.25.
It said on Friday, Aug 12 the recent price weakness is an attractive opportunity to increase exposure in a growing GLC-linked contractor and developer with improving earnings delivery and visible share price catalysts.
HDBSVR said the 2Q11 net profit of RM19 million (down 12% on-quarter but up 55% on-year) is in line with its and consensus' full year estimates.
'The 2Q11 CONSTRUCTION [] EBIT of RM6.9 million (down 60% on-year, lower than RM14.5 million in 1Q11) was driven by its RM1.2 billion outstanding order book,' it said.
The research house said the property EBIT was RM31.2 million (up six-fold on-year), driven by on-going works at Lot G and some contribution from Lot B strata title offices (60% sold at RM1,200 psf).
'Property margins were strong at 28% vs 24% in the previous quarter, lifted also by strong ASP for Lot B. The impending launch of Lot D (RM1.4bn, ASP RM1,100 psf) next month will ensure stronger property earnings going forward,' it said.
Company Name: MALAYSIAN RESOURCES CORP
| Research House: HWANGDBS | Price Call: BUY | Target Price: 3.25 |
KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call and sum of parts based target price of RM3.25.
It said on Friday, Aug 12 the recent price weakness is an attractive opportunity to increase exposure in a growing GLC-linked contractor and developer with improving earnings delivery and visible share price catalysts.
HDBSVR said the 2Q11 net profit of RM19 million (down 12% on-quarter but up 55% on-year) is in line with its and consensus' full year estimates.
'The 2Q11 CONSTRUCTION [] EBIT of RM6.9 million (down 60% on-year, lower than RM14.5 million in 1Q11) was driven by its RM1.2 billion outstanding order book,' it said.
The research house said the property EBIT was RM31.2 million (up six-fold on-year), driven by on-going works at Lot G and some contribution from Lot B strata title offices (60% sold at RM1,200 psf).
'Property margins were strong at 28% vs 24% in the previous quarter, lifted also by strong ASP for Lot B. The impending launch of Lot D (RM1.4bn, ASP RM1,100 psf) next month will ensure stronger property earnings going forward,' it said.
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