[%Yrap%]
Research by HLIB
Hold – TP RM0.67

“Time for a rest"

MRCB’s 1QFY24 core PATAMI of RM3.0m missed our and consensus estimates due to lower-than-expected construction contribution. Pipeline visibility continues to be strong anchored by LRT3 Phase 2 and KL Sentral. Other potential jobs are Penang LRT and HSR. Property launches of RM3.6bn is slated for FY24. There are other monetisation initiatives in the works. Cut FY24f/25f earnings by -45.0%/-3.5%. Downgrade to HOLD with unchanged SOP-driven TP of RM0.67 post-share price run-up.

Analyst:
Edwin Woo, CFA
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$KLSE-MRCB
Research by HLIB
Hold – TP RM0.67

“Time for a rest"

MRCB’s 1QFY24 core PATAMI of RM3.0m missed our and consensus estimates due to lower-than-expected construction contribution. Pipeline visibility continues to be strong anchored by LRT3 Phase 2 and KL Sentral. Other potential jobs are Penang LRT and HSR. Property launches of RM3.6bn is slated for FY24. There are other monetisation initiatives in the works. Cut FY24f/25f earnings by -45.0%/-3.5%. Downgrade to HOLD with unchanged SOP-driven TP of RM0.67 post-share price run-up.

Analyst:
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)