Malaysian Resources Up 3.2% On Land Swap Deal

Malaysian Resources Corp. (1651.KU) is up 3.2% at MYR2.29; this comes after the company says its subsidiary will undertake three government construction projects worth MYR128.7 million in exchange for land. MRCB says its subsidiary will receive two plots of land in Kuala Lumpur totalling 19,939 square meters in return for undertaking the projects entirely at its own cost. RHB Research says the company is effectively acquiring the land at MYR600 a square foot, at the low end of the asking price range of MYR600-MYR1,200 for commercial land. The house keeps its forecasts unchanged as it was already assuming MYR2 billion worth of new construction jobs in FY11. The house keeps its Buy rating with a MYR2.59 price target.