Friday 29 Mar 2024
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KUALA LUMPUR (Mar 10): KUB Malaysia Bhd, working together with Malaysia Steel Works (KL) Bhd (Masteel), expects to submit an update of the proposed RM1.23 billion inter-city rail transit system project in Iskandar Malaysia, Johor to the Economic Council for re-tabling by this year.

According to KUB (fundamental: 1.15; valuation: 1.2), the Transport Ministry has received and is reviewing the updates on the proposed RM1.23 billion project.

KUB, which is 22.55%-owned by Ministry of Finance Inc, said it would engage in further discussions with the Transport Ministry to speed up the review process, so that an update of the project could be submitted to Economic Council for re-tabling by this year.

"The group anticipates to put into action the partnership agreement made in January 2011 soon," it said in a statement today.

The proposed project will be led by a joint venture (JV) company called Metropolitan Commuter Network Sdn Bhd (MCN), in which Masteel (fundamental: 0.75; valuation: 1.2) and KUB hold 60% and 40% stakes respectively.

To recap, the proposed 100km-rail-system is to connect to Singapore’s Mass Rapid Transit line. It will have up to 25 commuter stations in major towns in Iskandar Malaysia. The operation will based on a 25-year concession.

Construction-wise, it would be undertaken in three phases and completed within 24 months from the project commencement.

It was also proposed the infrastructure development would be funded by project financing under the public-private Partnership scheme (PPP).

The JV is said to combine KUB’s property, engineering and construction core competencies and Masteel’s expertise in heavy engineering and building materials.

As at 3.20pm, KUB shares were trading up 1.3% at 39 sen, while Masteel's share price was down 3.57% at 81 sen.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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