MRCB 2Q profit slips 4% as construction revenue falls; BJSP gain lifts PBT

PETALING JAYA (Aug 28): Malaysian Resources Corp Bhd (MRCB) reported a 3.8% decline in profit attributable to shareholders for the second quarter ended June 30, 2026 (2QFY2026), as lower construction contributions weighed on revenue.

Profit attributable to shareholders slipped to RM14.50 million, or 0.32 sen per share, from RM15.07 million, or 0.34 sen per share, a year earlier. Revenue fell 41.4% to RM174.54 million from RM297.76 million. No dividend was declared for the quarter.

In a Bursa Malaysia filing on Friday (Aug 28), MRCB said the lower revenue mainly reflected weaker contributions from its engineering, construction and environment division after the LRT3 project reached 100% physical construction completion.

Prasarana issued the taking-over certificate for the LRT3 works on May 13, while the reinstatement of five LRT3 stations and related infrastructure works remained at the design stage.

Profit before tax (PBT), however, jumped 285% to RM12.58 million from RM3.27 million, chiefly due to a RM114.9 million remeasurement gain recognised in the quarter after MRCB completed its acquisition of the remaining 80% stake in Bukit Jalil Sentral Property Sdn Bhd (BJSP) in April.

The RM1.58 billion cash acquisition turned BJSP from a 20%-owned associate into an indirect wholly-owned subsidiary of MRCB. Other operating income rose to RM123.26 million from RM16.72 million, while finance costs increased to RM43.69 million from RM27.70 million.

MRCB's property development and investment division recorded quarterly revenue of RM48.81 million, up from RM28.53 million a year earlier, but swung to a segment loss of RM7.45 million from a profit of RM12.08 million.

MRCB attributed the property division's loss to higher operating and marketing expenses incurred during the quarter in preparation for new project launches.

Meanwhile, revenue from the engineering, construction and environment division fell to RM103.27 million from RM248.21 million, while the segment swung to a RM56.07 million loss from a RM14.35 million profit.

First-half profit falls 24%

For the first six months of FY2026, MRCB's profit attributable to shareholders fell 23.9% to RM17.99 million from RM23.66 million, while revenue eased 4.3% to RM493.70 million from RM515.95 million.

First-half PBT, however, rose 167% to RM21.68 million from RM8.12 million, again aided by the BJSP remeasurement gain.

The property development and investment division's first-half revenue rose 20.2% to RM89.59 million, supported by sales of completed units at Sentral Suites, VIVO 9 Seputeh, TRIA 9 Seputeh and Alstonia, as well as contributions from Residensi Tujuh and Adonis.

The division nevertheless recorded a RM16.32 million segment loss, compared with a RM7.78 million profit a year earlier.

The engineering, construction and environment division's revenue fell 9.9% to RM361.16 million and it recorded a RM17.42 million segment loss, against a RM22.27 million profit previously.

MRCB attributed the loss mainly to lower revenue recognition as LRT3 neared completion, a RM28.5 million expected credit loss provision on contract assets for completed projects, and a RM10.4 million write-off of previously capitalised stamp duty following the termination of a BJSP project management contract.

RM1.86b property launch pipeline

MRCB said it achieved RM150.8 million in property sales in the first half and had RM1.49 billion in unbilled sales from ongoing projects as at June 30, of which RM1.45 billion came from Australian developments.

After launching the RM473 million Lunar Residence in 9 Seputeh in July, MRCB has earmarked three further Malaysian launches for 4Q2026, subject to the necessary approvals and consents.

They comprise Kolektif in KL Sentral, with a gross development value (GDV) of RM205 million; Tower 5 in PJ Sentral, with a GDV of RM482 million; and Tower 1 in PJ Sentral, with a GDV of RM700 million.

Including Lunar Residence, MRCB's Malaysian property launch pipeline for 2026 totals RM1.86 billion.

Order book rises to RM8.5b

MRCB said its order book had risen to RM8.5 billion following the RM3.028 billion Penang LRT Mutiara Line Package STC award to the MRCB-Theta Edge joint venture, in which MRCB has a 90% interest.

The 68.8-month contract covers the engineering, procurement, design, construction, testing, commissioning and maintenance of railway systems.

MRCB is also pursuing an entry into digital infrastructure through BJSP's collaboration agreement for a proposed 65MW AI-ready data centre in Bukit Jalil, with an estimated gross development cost of RM2.1 billion.

The group said definitive agreements were expected to be finalised in 3Q2026, with the facility targeted for completion by 4Q2027. The collaboration agreement is not intended to be legally binding except for certain provisions.

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