KUALA LUMPUR: AmBank Research says Malaysian Resources Corporation Bhd is a 'buy' with a fair value of RM1.89 on the strength of the company's memorandum of understanding to develop an integrated transportation hub in Bandar Malaysia.
The firm said the recent termination of the share sale agreement of a stake in Bandar Malaysia to the IWH-CREC consortium has put the spotlight on MRCB, which is unaffected.
"In January 2017, MRCB signed an MoU with Wondrous Vista Development Sdn Bhd and Bandar Malaysia Sdn Bhd to develop an integrated transportation hub in Bandar Malaysia.
"We understand that even with the share sale termination, MRCB’s MoU remains intact, as Bandar Malaysia Sdn Bhd is still the registered owner of the land," AmResearch said.
The firm expects MRCB to have a bigger role in Bandar Malaysia's development moving forward based on the company's expertise in transit-oriented developments.