MRCB: More than 50% Turnover by 2011

Malaysian Resources Corporation Bhd (MRCB) is definitely seeing its stars shining these days. Possibly brighter than before the current rights issue offer.

MRCB expects turnover from its property division to exceed 50 per cent by next year as the construction of KL Sentral project gains momentum.

According to OSK Research, MRCB's property turnover to group's profits is between 30 and 40 per cent currently. Its on-going projects in KL Sentral are progressing as planned with some ahead of schedule.

"Other than the on-going projects and an improving outlook for the property sector, MRCB is expected to launch its luxury condominium project later this year with an estimated gross development value (GDV) of more than RM800 million," it said.

The research house said MRCB has indicated that its joint venture partner, CMY Capital Sdn Bhd, had reaffirmed its commitment to kick-start the St. Regis Hotel & Residences project soon with an estimated GDV of RM1.5 billion.

In order to continue its legacy in the property sector, OSK Research said MRCB was eyeing several land parcels belonging to the Federal government as part of its landbank replenishment strategy.

It said the company's recent rights issue could be an indication that MRCB was close to sealing the deal.[Are the writings already on the wall?]

"Although there is no firm timeframe on the deal, we believe the potential land acquisition could be a positive catalyst for the stock price," the research house said.

MRCB had hinted earlier it may acquire small parcels of federal land in the Kuala Lumpur city centre including the Brickfields area.

Will MRCB be the wonder kid of the block?

Let us see what are its potential brand new land bank acquisitions.

This will tell if the stars will shine ever brightly for the group after the rights issue close.