MRCB group MD Mohamad Salim to retire end-June, Imran to take over

Malaysian Resources Corporation Bhd (MRCB) group managing director Tan Sri Mohamad Salim Fateh Din

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) group managing director Tan Sri Mohamad Salim Fateh Din is expected to retire by the end of June while his son Mohamad  Imran is set to take over.

UOB Kay Hian Malaysia Research said it awaits more details on the development and has a Buy call on the construction-property company with a target price of RM1.01.

Salim is the second largest single shareholder of MRCB with 16.6% after the Employees Provident Fund (EPF) that owns 34.87%.  

Salim ended with the block after the injection of his Garpuna Group into MRCB, a deal which was completed in 2013.

Imran is currently an executive director of MRCB. Prior to that, he was the group chief operating officer of MRCB from March 2013 to February 2015. 

The research house said while it await more details, its positive view of MRCB remains unchanged.

“MRCB remains a deep value stock with high asset monetisation potential, riding on controlling shareholder, the Employees Provident Fund (EPF) board,”  it said.

UOB Kay Hian Research still expects the completion of stake sale of Bukit Jalil property development to EPF in June, a major de-gearing exercise.

Its target price of RM1.01 was based on a 20% discount to its sum-of-parts valuation of RM1.26 a share, implying 24.3 times 2019F price-to-earnings.