MALAYSIAN RESOURCES CORP BHD
By AmInvestment Bank Research Buy (maintained) Fair value: RM1.89
MALAYSIAN Resources Corp Bhd’s (MRCB) capability in successfully undertaking the renovation and refurbishment of Kuala Lumpur Sports City, formerly known as the National Sports Complex, could stand as a testament in bidding for similar projects.
According to AmInvestment Bank Research, it is encouraged by MRCB’s refurbishment work on KL Sports City, which is near to completion ahead of schedule. Note that the current progress of the refurbishment works stands at 98% and the facilities are expected to be handed over to the government by the end of this month.
Recently, the research house was in a site visit to KL Sports City, arranged by the MRCB management. The visit also covered the National Stadium, the Axiata Indoor Stadium, the Aquatic Centre and the surrounding area.
The sports facilities have undergone refurbishment for the upcoming 29th SEA Games and the 9th Asean Para Games in August and September respectively.
“We believe MRCB has done a decent job in completing the refurbishment work and improving the facilities to international standards. We understand there were 22 consultants involved with the project, many of them international specialist firms.
“This was to ensure that the facilities comply with the international standards for the respective sport that is going to be held at the venue.
“We believe MRCB has proven its capability to undertake the renovation and refurbishment of the National Sports Complex successfully up to the required standards and we do not discount the possibility of the company bidding for similar projects in the future,” said the research house in a note.
As a compensation for the refurbishment works, MRCB will receive a 76.14 acres, located north of the KL Sports City. To recap, MRCB and the Employees Provident Fund will be jointly developing the land as an integrated development comprising commercial and residential properties, with a total gross development value of RM21bil.
AmInvestment Bank Research has retained its earnings forecasts and “buy” recommendation on MRCB, with a unchanged fair value of RM1.89.