Analysts at CIMB Investment Bank Bhd (CIMB Securities) said Malaysian Resources Corporation Bhd (MRCB) remains a BUY with an unchanged target price of RM0.48 as the commencement of LRT3 Phase 1 operations removes a key overhang and supports stronger earnings visibility ahead, while highlighting that Phase 2 works and other catalysts continue to underpin the stock’s outlook.
The Shah Alam Line, also known as LRT3, officially begins operations on 29 June 2026 after being officiated on 28 June 2026. The 37.8-kilometre line connects Bandar Utama to Johan Setia and forms part of the wider Klang Valley rail network, with fares set at RM4.90 for a full cash journey and RM4.30 via cashless payment, while concession fares are RM2.40. Free rides will be offered from 29 June to 31 July 2026.
CIMB Securities analysts noted that MRCB, through wholly owned Setia Utama Sdn Bhd, is the turnkey contractor for both Phases 1 and 2 of the project. The RM2.5 billion Phase 2 package, awarded on 27 February 2025, is expected to ramp up towards end-2026 after the group received its notice to proceed in 1Q26, with construction scope including reinstated stations, two EV bus depots, rolling stock supply and system works.
They added that Phase 2 remains a key earnings driver for FY27 to FY28F, alongside redevelopment works at Kompleks Sukan Shah Alam. As of 31 March 2026, the group’s outstanding order book stood at RM5.3 billion.
Beyond LRT3, analysts also pointed to the commencement of the AUD200 million Maris Residences project in Gold Coast, which is over 90% sold. MRCB is currently trading at a steep 69% discount to its book value of RM1.03, with catalysts including new job wins and land bank monetisation, while risks centre on higher logistics and material costs.
As of 12.12 pm, MRCB’s stock price was flat at RM0.32.
