PETALING JAYA: Malaysian Resources Corp Bhd’s (MRCB) growth is expected to be driven by the redevelopment of Stadium Shah Alam and Kuala Lumpur Sentral Station, its RM30bil tender book and the newly launched RM1.2bil Vista residential project in the Gold Coast, Australia.
Its strategy to expand business overseas has progressed with the launch of the Australian project in April, according to MRCB.
The group has also entered into a conditional sale and purchase agreement with Sentral real estate investment trust for the disposal of Menara CelcomDigi for RM450mil in July which is expected to be completed in the fourth quarter of this year (4Q23).
The disposal of the building is expected to reduce MRCB’s net gearing to below 0.3 times.
In addition a total of RM1.7bil worth of projects are due to be launched in Auckland, New Zealand while other property launches worth RM2.3bil are expected in 2024.
This includes parcel A of 9Seputeh with a GDV of RM400mil, phase one of Bukit Jalil Sentral and an office tower in KL Sentral with a GDV of RM900mil and RM1bil respectively.
MRCB recorded a 11% year-on-year drop in revenue to RM1.3bil and 31% drop in earnings to RM19.3mil for the first half of 2023 (1H23), ending June 30.
The weaker performance was mainly due to the completion of three major infrastructure construction projects in late 2022 and the completion of two major property development projects in the 1H23.
MRCB’s property development and investment division recorded a 11% increase in revenue to RM369.5mil, contributed by the Sentral Suites development and TRIA 9 Seputeh mixed residential developments and Alstonia in Bukit Rahman Putra.
The segment’s operating profit, however, saw a decline by 24% to RM32.9mil due to the completion of Sentral Suites in March 2023 and the TRIA 9 Seputeh in May 2023.
MRCB stated the RM18mil contribution as other operating income from the value of the remaining land injected into its wholly owned subsidiary, Seri Iskandar Development Corp Sdn Bhd, was the reason for the higher operating profit in the corresponding year.
In total, MRCB property development division sold RM252.9mil worth of properties in 1H23. Its engineering, construction and environment division recorded a 18% decrease in revenue to RM940.5mil and a 23% decline in operating profit to RM43.1mil in 1H23.
The lower performance for the division was attributed to the completion of the Damansara-Shah Alam Elevated Expressway package CB2 and Mass Rapid Transit package V210 projects in late 2022.
The division’s revenue was mainly contributed by the Light Rail Transit 3 (LRT3), Muara Sungai Pahang phase three and the PR1MA Brickfields construction project.
The division’s operating profit mainly came from contributions by the LRT3 project, which recorded construction progress of 86%.
