We are maintaining our earnings estimates as the recently awarded Kompleks Sukan Shah Alam (KSSA) project, valued at RM2.94b, falls within Malaysian Resources Corp Bhd’s annual replenishment target of RM5.0b and remains within expectations, while also keeping forecasts unchanged pending the release of MRCB’s 1QFY25 results on May 30, 2025. While revenue contribution in FY25 will be minimal, management expects material earnings recognition between FY26 and FY29, in line with project progress. In this update, we are also introducing our FY27 earnings estimates and statement projections to reflect MRCB’s growing contract pipeline. We are also maintaining our target price at 56 sen, pegged to a 10% discounted 7-year forward price-to-book ratio of 0.53x on the group’s estimated FY27F book value per share of RM1.05. Together with the Ipoh Sentral Transit-Oriented Development, reinstatement of five LRT3 stations, and the Hospital Putra developments, the Kompleks Sukan Shah Alam award reinforces MRCB’s project momentum and earnings visibility, underscoring our Buy recommendation. – MIDF Amanah Investment Bank Bhd (May 20, 2025)
(Calls by analysts tracked by Bloomberg: 4 Buy, 3 Hold, 0 Sell; Consensus target price: 63 sen)
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