KUALA LUMPUR (Feb 23): Hong Leong IB Research has downgraded Malaysian Resources Corporation Bhd to “Hold” with a target price of RM1.32 and said 4Q core loss wipes out profits from prior quarters, bringing FY15 earnings to a meagre RM1 million.

In a note today, the research house said weak earnings were due to property development delays and higher construction cost.

“Targeting sales of RM1 billion this year which is a tall order given weak sentiment and delays for The Grid.

“LRT3 PDP contribution to begin only in June versus 1Q16 previously.

“Downgrade to Hold with RM1.32 target price, lack of earnings consistency will eventually thin investor’s patience,” it said.