OSK Research envisages a stronger second half for Malaysian Resources Corporation Bhd (MRCB) on higher construction revenue and higher progress profit from development projects in KL Sentral.

Nevertheless, the research house has trimmed its earnings forecast for 2010 by 22 per cent and 2011 by 15 per cent as the company intends to keep KL Sentral's Lot E and Lot 348 as investment properties.

'Previously, Lot E was supposed to be sold with MRCB expected to recognise property and construction revenue from it.

'Similarly for Lot 348, following the acquisition of the remaining 60 per cent stake from its joint venture partner recently, MRCB will not be recognising construction revenue from the development,' OSK said in a research note Wednesday.

It said revenue contribution from both developments would only come in from 2012 onwards in the form of rental income on their completion.

For the first half of 2010, it said that despite MRCB posting a lower year-on-year revenue, its pre-tax profit soared 198 per cent on improved margins due to the recognition of progress profit of its ongoing property development in KL Sental, particularly the developments on Lot A and Lot G. - BERNAMA