KUALA LUMPUR: Malaysian Resources Corporation Bhd's (MRCB) new Shah Alam Sports Complex is on track for completion by 2026, findings from RHB Research's ground checks at the public display showed.
The bank-backed research firm said the capacity of the new Shah Alam stadium is planned to be 35,000–45,000 spectators, versus 80,000 previously.
"Despite the smaller capacity, we believe this would result in better utilisation, as the redevelopment plans include recreational, commercial and residential parts together with a transit hub linked to the Light Rail Transit 3 (LRT3) station," it said in a note today.
RHB Research said the new stadium's underground water storage system (UWSS) from the proposed layout is crucial as Section 13 of Shah Alam is a flood-prone spot.
It added that the UWSS feature was likely mooted back in 2015 when former Shah Alam mayor Datuk Ahmad Zaharin mentioned utilising a portion of the Shah Alam stadium grounds to prevent flash floods from occurring.
The Shah Alam City Council, in April 2022, allocated RM150 million to upgrade drainage systems and retention ponds in the city over three years.
RHB Research made no changes to MRCB's earnings forecasts pending further details on the land to be swapped in exchange for MRCB's works on the complex and the job value to redevelop the complex, as MRCB and the Selangor state government finalise the project details post-public display.
Initially, the cost was estimated to be RM787 million, or 10 per cent, of its unbilled orderbook, excluding the long-term Bukit Jalil Sentral job.
RHB has maintained its 'Buy' call on MRCB, with an unchanged target price of 45 sen.
"We favour MRCB for diversifying its property arm into industrial properties, such as the Ipoh Raya Integrated Park and new overseas markets, namely Australia and New Zealand, with a total gross development value of more than RM1.5 billion.
"An upcoming catalyst would be the potential reinstatement of omitted works for LRT3 worth RM1 billion—partially mitigating risks from the Mass Rapid Transit 3 project," it added.