[%nPwv%] 
Research by HLIB
BUY – TP RM0.67

" Beats expectations”

MRCB’s 1HFY24 core PATAMI of RM54.2m was a significant beat. This was due to final account recognition of old projects. Construction segment could benefit from release of cost buffers for LRT3 (Ph1) in coming quarters. LRT3 Ph2 looks set to take off with major approval obtained. There were some delays in FY24 local property launches into FY25. We change FY24f/25f/26f core PATAMI forecasts by +193.7%/-6.5%/-14.0%. Upgrade to BUY with lower SOPdriven TP of RM0.67. Recent share price decline of -25% tilts risk reward to the upside at a low P/B multiple of 0.53x (similar peers ~0.8x-1.2x). 

Analyst:
Edwin Woo, CFA
[%kRZb%]

$KLSE-MRCB 
Research by HLIB
BUY – TP RM0.67

" Beats expectations”

MRCB’s 1HFY24 core PATAMI of RM54.2m was a significant beat. This was due to final account recognition of old projects. Construction segment could benefit from release of cost buffers for LRT3 (Ph1) in coming quarters. LRT3 Ph2 looks set to take off with major approval obtained. There were some delays in FY24 local property launches into FY25. We change FY24f/25f/26f core PATAMI forecasts by +193.7%/-6.5%/-14.0%. Upgrade to BUY with lower SOPdriven TP of RM0.67. Recent share price decline of -25% tilts risk reward to the upside at a low P/B multiple of 0.53x (similar peers ~0.8x-1.2x). 

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

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)