KUALA LUMPUR (July 8): Malaysian Resources Corp Bhd (MRCB) has teamed up with DRB-Hicom Bhd and Dekad Kaliber Sdn Bhd to build an integrated immigration, customs, quarantine and security (ICQS) complex at Bukit Kayu Hitam, Kedah.

In a filing with Bursa Malaysia today, MRCB (fundamental: 1.3; valuation: 1.4) said its wholly-owned subsidiary MRCB Engineering Sdn Bhd (MESB) has inked a joint venture (JV) and shareholders’ agreement with DRB-Hicom's unit Hicom Builders Sdn Bhd and Dekad Kaliber for the proposed construction project.

Dekad Kaliber has been identified as the JV company to carry out the proposed job, in which MESB will hold a 51% stake and Hicom Builders the remaining 49%.

“The JV will enable MESB and Hicom Builders to pool their resources and expertise to undertake the ICQS project. The board believes that the JV represents a good opportunity to further strengthen the future income of the MRCB group,” said MRCB.

MRCB said it does not expect the JV to have any material effect on the capital, earnings, net assets per share and gearing of MRCB for the financial year ending Dec 31, 2015.

To recap, the Malaysian government had entered into a concession agreement with Northern Gateway Infrastructure Sdn Bhd (NGISB) on Dec 30, 2011, for the right to design, finance, develop and construct the complex.

NGISB had in turn appointed Zelan-Kiara Teratai JV as the main contractor of the project, which then awarded the job to Dekad Kaliber for a contract sum of RM310 million.

MRCB shares fell 6 sen or 5.04% to close at RM1.13 today, giving a market capitalisation of RM2.13 billion. DRB-Hicom's (fundamental: 0.3; valuation: 2.4) share price also declined 4 sen or 2.68% to RM1.45, with a market capitalisation of RM2.88 billion.

(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.)