PETALING JAYA: MIDF Research is maintaining its earnings estimates for Malaysian Resources Corp Bhd (MRCB) as the recently announced joint venture (JV) for Hospital Putra and the Ipoh Sentral Transit-Oriented Development (TOD) project are within its expectations and aligned with MRCB’s replenishment strategy.
The research house also noted that MRCB’s announcement of two transformative projects in quick succession, the RM6.26bil Ipoh Sentral TOD and the RM520mil Hospital Putra development, highlighted the company’s robust project acquisition momentum.
“These new additions have significantly bolstered MRCB’s construction order book, which stood at RM26.1bil as at Sept 30, 2024.
“For calendar year 2025, projects secured thus far amount to RM520mil in gross development cost from the Hospital Putra development and about 10% of RM6.26bil gross development value (GDV) from the Ipoh Sentral project,” it said.
The Ipoh Sentral project, structured as an unincorporated JV, grants MRCB development rights rather than land ownership.
The cost structure, which accounts for less than 10% of the GDV, includes payments for land, profit-sharing arrangements and the transfer of developed assets to the Railway Assets Corp.
These costs are distributed across the project’s lifespan, avoiding significant upfront financial burdens, the research house said.
Last Friday, MRCB Land Sdn Bhd, a wholly owned subsidiary of MRCB, entered into a JV and shareholders’ agreement with PM Multilink Sdn Bhd, a subsidiary of Melaka Corp.
The JV, established through Majestic Quest Sdn Bhd, is structured with MRCB Land holding a 70% stake and PM Multilink owning the remaining 30%, to develop Hospital Putra in Melaka Tengah.
Earnings recognition for Hospital Putra is expected to commence progressively as the project reaches significant milestones, while Ipoh Sentral’s phased development timeline points to earnings contributions starting from financial year 2026 and spanning up to 20 years.
The brokerage maintained its “buy” call on MRCB with a target price of RM0.67 per share, adding that these project wins strengthened MRCB’s project pipeline and reinforced confidence in its ability to deliver sustainable long-term growth.
