[2007-10-05]  Saudi Arabia deal pushes up MRCB shares
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) climbed 4.5%, or 12 sen, to RM2.78 after the group said it was in talks to build a US$2bil transport and housing development in Saudi Arabia.

Said to be the group's biggest venture abroad, the project taps the booming construction market in the Middle East.

“The Saudi bid is a good move by MRCB,'' said Affin Investment Bank in a note yesterday.

Affin said MRCB, through its KL Sentral project, had built significant expertise in the development of an integrated transport hub and it was now being translated into more such projects locally and overseas.

“Locally, it has just secured the Butterworth hub project in the Northern Corridor Economic Region and we see participation in other transport hub projects in the other corridors,” said Affin.

“However, the Saudi project is massive and will put the company further in the limelight. If secured, there will also be significant revision in order book and future earnings.''


The Butterworth transport hub is a RM2bil contract that will be jointly developed by MRCB and Pelaburan Hartanah Bumiputra Bhd.

In June, MRCB was awarded a contract by Pelaburan Hartanah to build houses and apartments with a combined gross development value of RM500mil on three sites on Penang island.

MRCB managing director Shahril Ridza Ridzuan said then the project in Saudi Arabia would take off in a year in Jeddah, Mecca, Medina or Riyadh.

“We believe the project could involve light rail transit transportation, together with hotel and service accommodation hubs.

“It is much like KL Sentral in Mecca and Medina which are most in need of such transport system to transport pilgrims to the holy sites,'' said Kenanga Investment Bank in a note yesterday.


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