KUALA LUMPUR, April 22 — Malaysian Resources Corporation Bhd’s (MRCB) shares were on an uptrend today following the revival of the Bandar Malaysia project.
MIDF Research today maintained a “buy” on MRCB with an adjusted target price (TP) of RM1.05 from 90 sen previously.
It said, whilst details of the Bandar Malaysia project are still scarce, it believed opportunities are ample given the latest gross development value (GDV) estimation of RM140 billion.
Positively, Prime Minister Tun Dr Mahathir Mohamad also mentioned that Bumiputera participation and use of local content, would be given priority throughout the project.
“We think MRCB is well-positioned to participate in this project, adding to its track record in building PJ Sentral and KL Sentral as a transportation developer,” MIDF Research said in its research note today.
In an earlier estimate, it said Bandar Malaysia was reportedly valued at a RM200 billion GDV and to be developed in a span of 25 years.
The 486-acre (196.677-hectare) development, which sits on the old Sungai Besi air force base, will house transit oriented development (TOD), global business hub and retail lifestyle destination.
Accordingly, the whole development would potentially take place over 15-25 years.
Meanwhile, MRCB previously signed a memorandum of understanding for Bandar Malaysia TOD, in January 2017 with Wondrous Vista Development Sdn Bhd and TRX City Sdn Bhd.
“Following Bandar Malaysia’s termination in May 2017, we believe the agreement should have lapsed, as it was only valid for six months,” MIDF Research added.
At 11.42am, MRCB shares rose 8.33 per cent or eight sen to RM1.04 with 36.42 million shares traded. — Bernama
