Malaysian Resources Corporation Bhd (MRCB) remains a BUY, according to RHB Investment Bank Bhd, MBSB Investment Bank Bhd and Hong Leong Investment Bank Bhd, with target prices of RM0.51, RM0.40 and RM0.50 respectively following MRCB’s RM3.03 billion Penang Mutiara Line System Turnkey Contract (STC) win.
The contract was secured through MRCB’s 90%-owned joint venture with Theta Edge, giving MRCB an effective share of about RM2.7 billion. The 68.8-month project covers seven railway systems packages including rolling stock, signalling, trackwork, power supply, telecommunications, SCADA and ticketing systems.
RHB Research said the award was MRCB’s first job win in FY26 and estimated the project margin at about 5%, while MBSB Research said the contract lifted MRCB’s external orderbook to RM20.8 billion and unbilled jobs to RM8.3 billion. MBSB expects only a modest earnings contribution in FY26, with more meaningful recognition from the first half of FY27.
HLIB raised its FY26 contract win assumption to RM3.5 billion from RM2 billion and lifted its FY26 to FY28 earnings forecasts by 3%, 5% and 12%. It said MRCB’s construction earnings should gradually strengthen as major projects progress.
MRCB is also among bidders for the estimated RM4 billion to RM5 billion CMC2 civil package, with MRT Corp targeting an award in November. RHB said further upside could come from new data centre-linked deals involving MRCB’s remaining Bukit Jalil land.
As of 10.30 am, the stock price rose 1.47% to RM0.345.
