Strong showing.

Poised for a re-rating, Malaysian Resources Corporation is worthy of attention.

INVESTORS had overreacted in sending Malaysian Resources Corporation Bhd (MRCB)'s shares down on news related to the company's Eastern Dispersal Link (EDL) expressway concession recently, analysts say.

They say the announcement on March 9 that the EDL toll rate could be scrapped may be negative but investors should not have reacted negatively, ultimately sending MRCB's share price down to under RM2, from RM2.19 after the release of its fourth-quarter results in February.

The announcement differs from the terms of the concession agreement mooted in 2008, under which all motorists (with the exception of motorcycles) who use the JB-Singapore Causeway must pay the EDL toll charges.

Based on the 34-year concession agreement with the government, MRCB can charge toll fares on motorists (cars: RM6.20) using the EDL. However, due to some issues on toll rates (ie, public opposition is that the EDL toll rate is very high as compared with the …