KUALA LUMPUR: Shares of Malaysian Resources Corp Bhd (MRCB) and Theta Edge Bhd

were actively traded in early Friday trade after their joint venture won a RM3.028bil contract for the Penang LRT Mutiara Line's project.

At 9.50 am, MRCB traded unchanged at 34 sen, with 21.29 million shares changing hands, while Theta Edge rose seven sen, or 9.86%, to 78 sen, with 6.5 million shares traded.

MRCB announced that its 90:10 unincorporated joint venture with Theta Edge, known as MRCB-Theta Edge JV, has been appointed as the turnkey contractor for Package STC of the Penang LRT Mutiara Line project.

The 68.8-month contract covers the design, supply, installation, testing, commissioning and maintenance of the railway systems, including trains, signalling, power supply, telecommunications and ticketing systems.

RHB Research said the award marks MRCB's first contract win in FY2026 and its first rail-related project since securing the RM2.5 billion contract for the five reinstated Light Rail Transit 3 (LRT3) stations in February 2025.

The research house estimates the railway systems package will deliver a profit margin of around 5%. It also believes MRCB is well positioned to execute the project, given its experience as the main contractor for the RM16.6bil LRT3 project, which included the system packages.

Taking the latest award into account, RHB Research estimates MRCB's unbilled order book has risen to about RM8.2bil.

The research house noted that MRCB's effective 90% share of the RM3.03bil contract, or about RM2.7bil, is within its FY26 job replenishment assumption of RM4bil.

RHB Research maintained its earnings forecasts and retained its sum-of-parts target price of 51 sen, saying the latest contract award is in line with its FY2026 job replenishment assumption.

The research house said a key near-term catalyst would be new data centre-related contracts for MRCB's remaining two land parcels in Bukit Jalil.

It added that the stock's valuation remains undemanding, with an estimated RM8.2bil order book and trading at about 0.3 times FY2027 forecast price-to-book value.

The key downside risk, it said, is slower-than-expected contract wins.