At 5pm yesterday, property developer MRCB rose nine sen to RM1.25.
PETALING JAYA: Shares of Malaysian Resources Corp
Bhd (MRCB) and DRB-Hicom Bhd advanced as investors chased up the counters following fresh corporate news detailing positive prospects for the respective companies.
At 5pm yesterday, property developer MRCB rose nine sen to RM1.25.
CIMB Research in a report yesterday said it was upbeat about the company’s infra and highway divestment prospects this year.
“With 2018 being an “election year”, along with a massive pipeline of infrastructure projects (driven by rail), we are turning more upbeat on MRCB.
Supported by Gamuda’s rail credentials, CIMB Research said MRCB could land its second, but much larger-scaled, PDP contract after the light rapid transit 3’s RM9bil.
The research house added that the worst is over for its share price, having fallen 3.5% in 2017.
“The stock trades at a 20% discount to its fully diluted realisable net asset value of RM1.45. This is unjustified, in our view, given the renewed infra / order replenishment outlook and revival of the Eastern Dispersal Link divestment angle which is long overdue.
“We think the group’s RM2.9bil total value of jobs in tender has more upside in 2018.”
Meanwhile, DRB-Hicom, which scaled to more than a three year high on Tuesday, added four sen to RM2.30 yesterday.
Analysts are upbeat on DRB-Hicom’s subsidiary, Proton Holdings Bhd, as the national car company plots its return to the top with Chinese strategic partner Zhejiang Geely Holding Group Co Ltd (Geely) at its side.
After years of talk that Proton needed a strategic foreign partner to be able to remain competitive (and take it to the next level), industry observers reckon that the national carmaker finally hit the jackpot last year when it announced its tie-up with China-based Geely, which owns Volvo.
Geely completed its acquisition of a 49.9% stake in Proton in September 2017. Vehicles engineered with Volvo technology, such as its GC9 sedan and the Boyue sport-utility vehicle (SUV), have been a hit in China, the world’s biggest auto market.
Based on reports, the Boyue is expected to arrive in Malaysia in the second half of 2018. Most industry observers are optimistic that the vehicle will be popular in Malaysia as it would rival the likes of the Honda CR-V and Mazda CX-5.
