AMBANK KEEPS

Re­search house sees de­vel­oper play­ing big­ger role in Ban­dar Malaysia project

New Straits Times - - Business -

KUALA LUMPUR

AMBANK Re­search (AmRe­search) has is­sued a “buy” call on Malaysian Re­sources Corp Bhd (MRCB) with a higher fair value of RM1.89 fol­low­ing its sign­ing of a mem­o­ran­dum of un­der­stand­ing (MoU) to de­velop a trans­porta­tion hub in Ban­dar Malaysia.

AmRe­search said the ter­mi­na­tion by TRX City Sdn Bhd of the share sale agree­ment with the IWH-CREC con­sor­tium had put the spot­light on MRCB.

“In Jan­uary, MRCB signed an MoU with Won­drous Vista Devel­op­ment Sdn Bhd and Ban­dar Malaysia Sdn Bhd to de­velop an in­te­grated trans­porta­tion hub in Ban­dar Malaysia.

“We un­der­stand that even with the share sale ter­mi­na­tion, MRCB’s MoU re­mains in­tact as Ban­dar Malaysia Sdn Bhd is still the reg­is­tered owner of the land,” said AmRe­search.

It ex­pects MRCB to have a big­ger role in Ban­dar Malaysia’s devel­op­ment mov­ing for­ward, based on the firm’s ex­per­tise in tran­sit-ori­ented de­vel­op­ments.

“We be­lieve the stock is ripe for fur­ther re-rat­ing due to ex­pected pos­i­tive news flows in the up­com­ing months.

MRCB’s share price has had a good rally this year, ap­pre­ci­at­ing by 27 per cent to date.

AmRe­search be­lieves this is mainly due to con­sis­tent pos­i­tive events in the com­pany over the last few months, which are favourable to its fu­ture out­look.

Artists im­pres­sion of the Ban­dar Malaysia project. AmRe­search ex­pects MRCB to have a big­ger role in the project’s devel­op­ment mov­ing for­wards.

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