Wednesday, April 27, 2011

MMCCORP - OSK reiterates 'buy' call on MMC

Stock Name: MMCCORP
Research House: OSK

OSK Research has given a positive outlook for MMC Corporation Bhd though it has yet to hog the limelight unlike its sister companies -- Padini Holdings Bhd and DRB-Hicom Bhd.

Among the possible upsides are MMC-owned Malakoff Bhd securing the 1,000MW extension to Tanjung Bin and MMC/Gamuda joint venture securing the tunnelling portion of the KL Mass Rapid Transit project, it said.

"So, it's a matter of time before MMC, a crown jewel of business tycoon Tan Sri Syed Mokhtar Albukhary, be back on the investors' radar screen," it said in a statement.

DRB-Hicom recently grabbed the headlines when it clinched the bid to buy 32 per cent stake in postal services provider, Pos Malaysia Bhd, from Khazanah Nasional Bhd, the government's investment arm.

Syed Mokhtar sold his substantial 28 per cent stake in Padini Holdings.

The research house also said there were possibilities of MMC securing the proposed East-West Railway project and resurgent newsflow at Iskandar Malaysia where MMC was the second largest private land bank owner.

Hence, OSK said, it was reiterating the "Buy" call on MMC shares with a fair value of RM3.62. At 11.55am, MMC shares were up three sen to RM2.65. -- Bernama

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