PETALING JAYA: The RM2.94bil Shah Alam Sports Complex project awarded to Malaysian Resources Corp Bhd (MRCB) by Menteri Besar Selangor Inc solidifies the company’s engineering and construction expertise in large-scale public infrastructure, according to MIDF Research.
It said this project builds on MRCB’s track record from the successful delivery of the KL Sports City redevelopment in 2017.
“This latest undertaking is expected to enhance MRCB’s technical standing, especially in public-sector and sports-related infrastructure,” the research house said, noting that this would be the company’s fourth major contract in 2025.
It added that projects won by MRCB this year would bolster the medium-term earnings visibility and reinforces confidence in the company’s ability to consistently replenish its order book, where the construction order book stood at RM26.1bil as at end-December 2024.
For this year, the order book has grown to RM6bil.
As the contract sum for the project would be settled via a combination of cash and land, MIDF Research expects that the land swap, to be capped at RM200mil and subject to mutually agreed valuation, could present future upside in replenishing the company’s property development inventory and support earnings.
MRCB’s landbank gross development value (GDV) stood at RM37.8bil as at end-December 2024, with additional parcels such as land in Cyberjaya still pending GDV confirmation.
MIDF Research has maintained a “buy” recommendation on the stock and maintained target price for the shares at 56 sen.
It has kept its earnings forecast unchanged pending the release of the company’s first quarter ended March 31, 2025 results to be released on May 30.
It noted that together with the projects awarded this year and the reinstatement of five LRT stations, the latest project underscores the recommendation.
