Saham: KLSE-MRCB - PT. Malaysian Resources Corporation Berhad

How do you think this will play out for $MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD) in the mid-term?

The stock seems to have been in a state of hibernation since 2017, awaiting a significant catalyst. With this new project and the KL Sentral redevelopment, will these be sufficient to provide the much-needed boost?

Their current net gearing ratio of 0.30 also suggests some room for raising debt, if necessary.

What’s your take on this?

MRCB Wins Bid for Ipoh Sentral

Malaysian Resources Corp Bhd (KL:MRCB) is said to have won the bid for the Ipoh Railway Station Integrated Development Plan (iRide) project, which will be inked on Thursday (Jan 23) in Ipoh, Perak, according to sources.
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There were two consortiums shortlisted by the Railway Assets Corporation (RAC) to develop iRide, Transport Minister Anthony Loke was reported saying in September last year. The iRide project, which is based on the transit-oriented development (TOD) concept, will see the development of almost 70 acres of RAC land behind Ipoh Railway Station, which will be rebranded as Ipoh Sentral.
The development will include affordable housing, hotel, commercial, green spaces, and educational institutions.
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“MRCB is always in the picture when it comes to TODs and they are also involved in Penang Sentral. With Employees Provident Fund (EPF) as the major shareholder and its proven track record, it will always be a preferred choice,” another source told The Edge.
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In November 2018, MRCB soft opened Penang Sentral in Butterworth, and according to its statement, is the main TOD for the State of Penang, Greater George Town and the Northern Corridor with a total gross development value (GDV) of RM2.9 billion.
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MRCB is also redeveloping KL Sentral, which was reported to cost over RM1 billion, and to be borne by MRCB under the public-private partnership unit under the Prime Minister’s Department.
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MRCB was the master developer of KL Sentral, Malaysia’s largest transit hub comprising over 72 acres. The station opened in 2001 with a capacity of 100,000 passengers daily but now handles some 200,000 passengers daily.
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Other TOD developments by MRCB include PJ Sentral and Kwasa Sentral.
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On Dec 18, MRCB had withdrawn from the Berjaya-led consortium competing for the Kuala Lumpur-Singapore High-Speed Rail (KL-SG HSR) to “pursue other strategic opportunities”. The consortium included Berjaya Rail Sdn Bhd, Keretapi Tanah Melayu, IJM Corp Bhd (KL:IJM), and its technical partners including Deutsche Bahn, Hitachi Rail and Hyundai Rotem.
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The EPF is the largest shareholder of MRCB (36.21%), followed by Gapurna Sdn Bhd (15.48%) and Lembaga Tabung Haji (5.35%).

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)

Source: The Edge
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$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
Took a glance at MRCB's chart. It is 51sen now. Next stop prolly is 43sen. Without catalysts to support its share price, MRCB as a debt-laden company will not be favoured among funds.

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
Research Report by RHB

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
Research Report by KENANGA

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
Research Report by HLIB

Green Party sec-gen retracts claims in MRCB defamation suit

KUALA LUMPUR: Green Party of Malaysia secretary-general Abdul Razak Ismail has expressed regret and retracted his statements concerning the redevelopment of the Shah Alam Sports Complex, particularly the Shah Alam Stadium, which he made against Malaysian Resources Corporation Bhd (MRCB).

© New Straits Times Press (M) Bhd

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
I do not think there any further catalysts for MRCB. Contemplating clearing all my remaining stock.

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
Research by Kenanga
OUTPERFORM – TP RM0.62

" Chugging Along”

MRCB’s 1HFY24 earnings exceeded expectations, mainly due to chunky showing from the construction division making good progress. Order book replenishment of its construction division will be underpinned by a tender book of RM34b. Meanwhile 1HFY24 property sales of RM497.4m are on track to meet its RM800m target backed by RM1.9b of new launches. We raise our FY24F earnings by 36%, raise TP by 82% to RM0.62 (from RM0.34), and upgrade to OP (from MP) as we like the stock for its participation in, and ability to secure, high value construction projects.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD)
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

Titan Trading Notes For Thursday [18/7/2024]:

$KLSE-KLCI had a good breakout towards the 1633 points region with an overall positive market sentiment today as the market started to rebound strong from the past weeks of selling activities. Daily trading volume also managed to bounce back towards the 5.2 billion mark, which is a good sign here.

Main stocks that showed strong buying momentum would be the likes of EKOVEST, BJCORP, SNS, MRCB, MYEG, CENSOF, WCT, IWCITY. JPG, NOVAMSC, JCY. GBGAQRS, IJM, AGX, PLYTEC, and FAJAR. All of which were able to sustain their rallies throughout the day on the top volumes list.

$EKOVEST / 8877 (EKOVEST BERHAD) since breaking out from its RM 0.48+ main downtrend resistance last week, had been breaking out strong here with huge volume and buying momentum, even testing the RM 0.56 regions today despite being overbought.

For now looking quite strong here and as long as able to sustain above its RM 0.525 immediate support levels, could continue on towards and beyond the RM 0.60+ regions for an uptrend continuation pattern.

Will be monitoring EKOVEST closely as something big seems to be brewing behind the scenes.

$MRCB / 1651 (MALAYSIAN RESOURCES CORPORATION BERHAD) since breaking out towards the RM 0.74 regions, had been retracing over the past 2 months here with RM 0.60+ as the main support levels on the daily chart over the past month.

However recently, was able to come back up quite strongly and today, even managed to breakout towards the RM 0.69 regions with good volume and buying momentum. So far looking quite ripe for an uptrend continuation pattern here as long as able to sustain above its RM 0.66+ support.

Will be monitoring MRCB closely

$FAJAR / 7047 (FAJARBARU BUILDER GROUP BHD) although retraced back towards its RM 0.51+ immediate support levels earlier this week, was able to rebound and breakout quite strong today, breaking out towards the RM 0.54 regions with good volume and buying momentum.

For now looking very ripe for an uptrend continuation pattern here. As long as able to sustain above its RM 0.515+ immediate support, could continue on towards and beyond its RM 0.55+ major resistance levels soon.