PETALING JAYA: Apex Research is taking a more cautious view on Mitrajaya Holdings Bhd
’s medium-term outlook, amid persisting order-book pressures.
The research house said the management lacked “firm visibility” on conversion timelines for its RM1.2bil tender book.
Mitrajaya’s order book has also declined to RM400mil from RM508.4mil.
“While the tender-book size offers some optionality, the gap to our RM1.4bil average annual replenishment assumption remains wide, while the timing and conversion of these tenders remain uncertain,” it said in a note.
Apex Research also said the revenue slump in Mitrajaya’s property development arm is not simply a matter of delayed handovers.
It reflects a genuine slowdown in buyer take-up, particularly at its Amber project in Bukit Sentosa.
“We view the slower take-up as a factor that could weigh on near-term property earnings visibility.”
Mitrajaya’s unsold inventory currently stands at RM532.74mil, against unrecognised sales of only RM37.6mil, suggesting the inventory overhang may take time to clear.
In the pipeline, Puchong Prima’s first plot (1,112 affordable serviced apartments, priced at RM250,000 per unit) is expected to launch in the first quarter of financial year 2027, with the project slated for completion within three years and contribute meaningfully from financial year 2027 (FY27) through FY29.
Separately, a new industrial project in Banting has been disclosed, though its launch remains subject to regulatory approval. Landbank stands at RM250mil, with a selective approach indicated for further acquisitions, prioritising land with near-term development potential.
Taking latest developments into account, Apex Research has cut its order-book replenishment assumption by Mitrajaya to RM800mil for FY26, RM1bil for FY27 and RM1.2bil for FY28, as compared to RM1.4bil per year previously.
“We correspondingly lower our FY26, FY27 and FY28 core net profit forecasts to RM58.2mil, RM46.9mil and RM62.5mil, respectively, from RM137mil, RM180.5mil and RM189.2mil previously.”
In addition, Apex Research lowered the target price for the stock sharply to 85 sen from RM1.27 earlier.
The stock had already fallen by over 31% since the start of the year to 49 sen as at press time yesterday.
Despite the share price decline, Apex Research said the company’s management had reaffirmed the group’s healthy financial performance, underpinned by a sound balance sheet and a net cash position.
The net tangible asset per share of RM1.20 also offered a solid underlying asset base.
While acknowledging the lower construction order book as a key area of concern, management expressed confidence in its ability to replenish the order book, citing its track record in delivering major construction projects, technical capabilities and experienced execution team, and said it continued to pursue suitable projects while maintaining discipline in project selection and pricing.
“New property launches at strategic locations were also cited as a further avenue for earnings and cash-flow contribution, reiterating that its focus remained on strengthening fundamentals, replenishing the order book and executing the property pipeline to create long-term shareholder value,” added the research house.
Apex Research has maintained its “buy” call on Mitrajaya.
