MRCB wins RM2.47b LRT3 reinstatement project, sees earnings contract in FY2024

• The scope of work includes the construction of five reinstated stations along the LRT3 line, the construction of two electric vehicle bus depots in Shah Alam and Johan Setia, the supply of light rail vehicles as well as construction-related infrastructure and system works.

KUALA LUMPUR (Feb 27): Malaysian Resources Corporation Bhd’s (KL:MRCB) wholly-owned subsidiary Setia Utama LRT 3 Sdn Bhd has won a reinstatement works contract from Prasarana Malaysia Bhd worth RM2.47 billion that spans 48 months.

According to the bourse filing, the scope of work includes the construction of five reinstated stations along the LRT3 line, the construction of two electric vehicle bus depots in Shah Alam and Johan Setia, the supply of light rail vehicles as well as construction-related infrastructure and system works.

In a separate financial report filing, MRCB’s net profit for the fourth quarter ended Dec 31, 2024 (4QFY2024) fell 99.2% to RM629,000 from RM80.23 million a year ago, while its quarterly revenue shrunk 46.4% to RM370.72 million from RM692.16 million.

The weaker performance was due to much lower contribution from its property development and investment division after the completion of two major property development projects and the absence of disposal gains which amounted to RM150.2 million in FY2023.

In addition, the group also saw lower revenue recognition from the LRT3 construction project as it neared completion.

Nevertheless, MRCB declared a final dividend of one sen per share, consistent with the previous year.

For FY2024, the group’s net profit fell 37% to RM63.67 million from RM101.03 million, as total revenue slid 35.2% to RM1.65 billion from RM2.54 billion in FY2023.

Looking ahead, MRCB said it has earmarked RM3.9 billion worth of property launches for 2025, pending planning approvals, with RM1.9 billion in Malaysia, RM1.5 billion for New Zealand and RM0.5 billion for Australia.

As for its engineering, construction and environment division, aside from the RM2.47 billion LRT3 contract, other future growth drivers include the redevelopments of Stadium Shah Alam and Kuala Lumpur Sentral Station.

Ongoing projects like the RM250 million Sungai Langat Phase 2 and the RM380 million Muara Sungai Pahang Phase 3 flood mitigation construction project, which achieved financial progress of 6% and 54% respectively, as at end 2024, will also contribute to the division’s revenue, it added.

MRCB shares have relinquished all its gains in 2024, closing at 46 sen on Thursday, valuing it at market capitalisation of RM2.06 billion.

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