- Malaysian
Resources Corporation Bhd (MRCB)
announced yesterday that its Chief Executive Officer (CEO), Datuk Mohamed
Razeek, has tendered his resignation to join another company.
- However, neither
was a successor named nor was it made known whether the new CEO would come from
an internal promotion or be hired externally.
- Recall that Razeek
joined MRCB in 2009 as the COO and was later appointed as CEO within a few
months. Razeek started his career in an engineering consulting firm in
London.
- He later joined
Land & General, Eastern & Oriental Property Development Bhd and Damac Properties
Co, Dubai.
- During his tenure,
MRCB’s FY2010 revenue crossed the RM1bil mark for the first time since its
inception whereby net earnings also nearly doubled YoY to RM67mil with property
EBIT doubling to RM49mil.
- Although MRCB
missed its KPI for FY2011 – mostly due to drag in construction earnings – property
earnings continued to perform strongly with earnings growing by about 3x.
- Considering that
Razeek is known as a property man, his departure from the company is certainly
a setback given that MRCB is expected to be
involved in several major redevelopment
projects in the Klang Valley – namely the redevelopment of the RRI Land and the
Unilever land in Bangsar.
- Although MRCB does
not have a significant track record in developing townships, we expect the
company to tie up with an established township player for the RRI Land development.
- We reaffirm our
HOLD rating on MRCB.
Source: AmeSecurities
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