Research house sees developer playing bigger role in Bandar Malaysia project
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.