KUALA LUMPUR – Malaysian Resources Corporation Bhd’s (MRCB) 2025 order book is anticipated to expand by RM4 billion to RM5 billion due to delayed project spillover such as the Kuala Lumpur Sentral redevelopment, LRT3 variation orders, and the Shah Alam Stadium redevelopment.
In a note today, Hong Leong Investment Bank Bhd said this would substantially raise its external order book from the current RM4 billion level (excluding Bukit Jalil projects).
“Key delay factors such as approval hurdles for LRT3 Phase 2 and land parcel identification for Shah Alam Stadium have largely been resolved.
“Meanwhile, the KL Sentral project is being refined but is expected to be formalised in 2025, which aligns with the Transport Ministry 2025 commencement target,” it said.
Hence, the bank said 2025 is likely to be busy for MRCB on multiple fronts, as it converts RM4 billion to RM5 billion worth of negotiated projects, coupled with its maiden venture into the healthcare space, the Penang LRT tenders, and a RM4.3 billion property launch target.
“We believe the conversion of negotiated projects should substantially expand its active external order book from the current level of RM4 billion, with potentially more from other infrastructure tenders.
“After delays in 2024, property launches and sales should pick up, with the key Australian market seeing upward price revisions. Also, we see its withdrawal from the Kuala Lumpur–Singapore high-speed rail project as prudent, given the need to deploy resources to other projects,” it said.
The bank maintains a “Buy” with an unchanged target price of 67 sen for MRCB. – February 7, 2025