RHB Investment Bank Bhd (RHB Research) maintained its BUY call on Malaysian Resources Corp Bhd (MRCB) with an unchanged target price of RM0.51, implying about 55% upside, alongside a dividend yield of roughly 3%.
The research house highlighted the group’s exposure to the LRT3 project, transit-oriented development potential and upcoming rail contract opportunities.
RHB Research said the outlook for MRCB remains supported by its role in the Light Rail Transit 3 project and potential spillover from transit-oriented developments along the route, adding that the group’s experience in large-scale rail projects such as MRT2 strengthens its positioning for future tenders including Penang LRT and MRT3.
It noted that MRCB was awarded a RM2.5 billion contract in February 2025 covering the construction of five reinstated LRT3 stations, two electric vehicle bus depots in Shah Alam and Johan Setia, as well as rail vehicles and related infrastructure works. The reinstated stations include Tropicana, Temasya, Raja Muda (Sirim), Bukit Raja and Bandar Botanik.
According to RHB, works on the reinstated stations are expected to commence in the third quarter of 2026 after the notice to proceed was received in the first half of 2026, which should lead to stronger progress billings for MRCB’s construction arm towards the end of 2026. The group’s Shah Alam Sports Complex project, valued at RM2.9 billion, is also expected to contribute to earnings visibility.
The research house added that transit-oriented development opportunities along the LRT3 corridor could provide further upside, pointing to emerging developments near stations such as Dato’ Menteri and Shah Alam, as well as potential commercial and affordable housing zones identified by the Ministry of Transport.
RHB kept its earnings forecasts unchanged and retained its valuation, noting that the target price includes a 4% ESG premium based on an ESG score of 3.2. It added that a key near-term catalyst would be the securing of Segment 2 of the Penang LRT project, while risks include slower-than-expected job wins in the construction sector.
As of 11.26 am, MRCB’s shares noted a rise of 6.15%, with a price of RM0.345.
