Kenanga Research upbeat on MRCB

KUALA LUMPUR: Kenanga Research is maintaining its "outperform" call on
Malaysian Resources Corporation Bhd (MRCB) due to the latter's earnings
visibility after the conclusion of 13th general election and its share
swap deal with Nusa Gapurna Development Sdn Bhd.

In a note
today, Kenanga Research said MRCB's outlook remained bright especially
after the elections as the long-standing issues on its Eastern Dispersal
Link (EDL) was expected to be resolved soon.

"We are also
upbeat on its property division as it now has a bigger property gross
development value potential from Nusa Gapurna, mostly in the prime area
in the Klang Valley," it said.

MRCB recorded revenue and pre-tax
profit of RM262 million and RM5.1 million, respectively, for the first
quarter ended March 31, 2013 as compared to RM328.6 million and RM35.6
million, respectively, in the same period last year.

The decline
in profit in the period was driven by lower revenue from the property
division and lower construction margin as most of its ongoing property
developments including KL Sentral Lot B (Q Sentral) was at the early
stage of the development.

"We expect MRCB to record most of its full-year earnings in the second half of 2013," said Kenanga Research. -- BERNAMA