KUALA LUMPUR (Oct 14):  Malaysian Resources Corp Bhd (MRCB) rose as much as two sen or 1.3% to RM 1.52 on news the firm had clinched a RM197.37 million contract to build the 30-storey JLand Tower in Johor Bahru.

At 3.15pm, MRCB traded flat at RM1.50 with 990,900 shares done.

MIDF Research said it had reaffirmed its "buy" recommendation on MRCB shares with an unchanged target price of RM2.59.

“With this new project, MRCB’s outstanding order book will rise by 18.2% to RM1.3 billion from RM1.1 billion,“ said MIDF in a note today.

MIDF said MRCB was now on a stronger footing after completing several key acquisitions. These include a 51% stake in Penang Sentral Sdn Bhd, 40% stake in Excellent Bonanza Sdn Bhd and 30% in Petaling Jaya (PJ) Sentral.

MRCB is also involved in the development of the  RM8 billion “MX-1” mixed project within the proposed Kwasa Damansara property project in the Klang Valley.

“The MX-1 project is on top of the current estimated mixed property development projects that MRCB has, which have a gross development value of more than RM20 billion over the next 10 years, and are the potential drivers, which will contribute to the firm’s stronger earnings growth ahead,” said MIDF.

MIDF said further monetisation of MRCB’s investment assets in KL Sentral via real estate investment trusts would improve its balance sheet by reducing its gearing.

The asset monetisation proceeds will also enable MRCB to fund some of its projects.