MRCB

Malaysian Resources Corporation BerhadKLSE:MRCB Stock Report

Market Cap

RM1.7b

7D

-7.4%

1Y

-22.7%

Updated

20 Sep, 2021

Data

Company Financials +
MRCB fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends2/6

MRCB Overview

Malaysian Resources Corporation Berhad, an investment holding company, operates as a property and construction company in Malaysia, Australia, and Hong Kong.

Price History & Performance

Summary of all time highs, changes and price drops for Malaysian Resources Corporation Berhad
Historical stock prices
Current Share PriceRM0.38
52 Week HighRM0.34
52 Week LowRM0.53
Beta1.29
1 Month Change-2.60%
3 Month Change-12.79%
1 Year Change-22.68%
3 Year Change-47.92%
5 Year Change-71.59%
Change since IPO-44.62%

Recent News & Updates

Aug 18
Is Malaysian Resources Corporation Berhad (KLSE:MRCB) Weighed On By Its Debt Load?

Is Malaysian Resources Corporation Berhad (KLSE:MRCB) Weighed On By Its Debt Load?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

MRCBMY ConstructionMY Market
7D-7.4%-1.4%-1.0%
1Y-22.7%-2.5%5.9%

Return vs Industry: MRCB underperformed the MY Construction industry which returned -2.5% over the past year.

Return vs Market: MRCB underperformed the MY Market which returned 5.9% over the past year.

Price Volatility

Is MRCB's price volatile compared to industry and market?
MRCB volatility
MRCB Beta1.29
Industry Beta1.03
Market Beta1

Stable Share Price: MRCB is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MRCB's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19681,770Mohamad Bin Mohamad Salimhttps://www.mrcb.com.my

Malaysian Resources Corporation Berhad, an investment holding company, operates as a property and construction company in Malaysia, Australia, and Hong Kong. It operates through Property Development & Investment; Engineering, Construction & Environment; Facilities Management & Parking; and Other segments. The company invests in and develops a portfolio of integrated commercial and residential properties anchored around transportation hubs; and owns an urban development land bank of 323 acres.

Valuation

Is Malaysian Resources Corporation Berhad undervalued compared to its fair value and its price relative to the market?

1171.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRCB (MYR0.38) is trading above our estimate of fair value (MYR0.09)

Significantly Below Fair Value: MRCB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRCB is poor value based on its PE Ratio (1171.9x) compared to the MY Construction industry average (18.3x).

PE vs Market: MRCB is poor value based on its PE Ratio (1171.9x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: MRCB is poor value based on its PEG Ratio (15.5x)


Price to Book Ratio

PB vs Industry: MRCB is good value based on its PB Ratio (0.4x) compared to the MY Construction industry average (0.9x).


Future Growth

How is Malaysian Resources Corporation Berhad forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

75.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRCB's forecast earnings growth (75.6% per year) is above the savings rate (3.6%).

Earnings vs Market: MRCB's earnings (75.6% per year) are forecast to grow faster than the MY market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MRCB's revenue (14.7% per year) is forecast to grow faster than the MY market (6.4% per year).

High Growth Revenue: MRCB's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRCB's Return on Equity is forecast to be low in 3 years time (1%).


Past Performance

How has Malaysian Resources Corporation Berhad performed over the past 5 years?

-56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRCB has a large one-off gain of MYR6.9M impacting its June 30 2021 financial results.

Growing Profit Margin: MRCB became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MRCB's earnings have declined by 56.8% per year over the past 5 years.

Accelerating Growth: MRCB has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MRCB has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-2%).


Return on Equity

High ROE: MRCB's Return on Equity (-0.2%) is considered low.


Financial Health

How is Malaysian Resources Corporation Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: MRCB's short term assets (MYR2.7B) exceed its short term liabilities (MYR1.6B).

Long Term Liabilities: MRCB's short term assets (MYR2.7B) exceed its long term liabilities (MYR2.0B).


Debt to Equity History and Analysis

Debt Level: MRCB's debt to equity ratio (43.2%) is considered high.

Reducing Debt: MRCB's debt to equity ratio has reduced from 126.5% to 43.2% over the past 5 years.

Debt Coverage: MRCB's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: Insufficient data to determine if MRCB's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Malaysian Resources Corporation Berhad current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRCB's dividend (2.67%) is higher than the bottom 25% of dividend payers in the MY market (1.54%).

High Dividend: MRCB's dividend (2.67%) is low compared to the top 25% of dividend payers in the MY market (4.16%).


Stability and Growth of Payments

Stable Dividend: MRCB's dividend payments have been volatile in the past 10 years.

Growing Dividend: MRCB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (3048.8%), MRCB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRCB's dividends in 3 years are forecast to be covered by earnings (75.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Mohamad Bin Mohamad Salim (39 yo)

3.17yrs

Tenure

RM1,555,713

Compensation

Mr. Mohamad Imran Bin Mohamad Salim serves as Group Managing Director at Malaysian Resources Corporation Berhad and also served as Managing Director since July 2, 2018 and as its Executive Director since M...


CEO Compensation Analysis

Compensation vs Market: Mohamad's total compensation ($USD372.94K) is about average for companies of similar size in the MY market ($USD302.22K).

Compensation vs Earnings: Mohamad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MRCB's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: MRCB's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Malaysian Resources Corporation Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Malaysian Resources Corporation Berhad
  • Ticker: MRCB
  • Exchange: KLSE
  • Founded: 1968
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: RM1.675b
  • Shares outstanding: 4.47b
  • Website: https://www.mrcb.com.my

Number of Employees


Location

  • Malaysian Resources Corporation Berhad
  • Menara Allianz Sentral
  • Level 30
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 50470
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 15:25
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.