Kerjaya Prospek Group Bhd - Contract Win Keeps Momentum Building
Thu, 13-Nov-2025 07:44 am
by Research Team • Apex Research

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KERJAYA (7161)

Target Price (RM)

2.34

Recommendation

Hold

  • KERJAYA has secured a construction contract worth RM56.4m for the construction of steel roof structures, including hawker centres in Penang.

  • Assuming a PBT margin of 11%, the contract is expected to contribute c.RM6.2m (or 2.4% of FY25F PBT) over FY25F–FY27F.

  • Year-to-date, total contract awards stand at RM1.2bn across 10 projects, boosting the outstanding order book to RM3.8bn (2.1x FY24 revenue).

  • We maintain our HOLD recommendation with an unchanged TP of RM2.34, based on a 15.0x FY26F EPS of 15.5 sen, along with a three-star ESG rating.

 

Secured Construction Contract Worth RM56.4m. Kerjaya Prospek (M) Sdn Bhd, a wholly-owned subsidiary of KERJAYA, has secured a RM56.4m contract from the Jabatan Ketua Menteri Pulau Pinang for the construction of steel roof structures, including hawker centres at Jalan Gurney, Penang. The project is scheduled to commence on 12 Nov 2025 and is expected to be completed within 18 months.

 

Our View. We view the latest contract win favourably, as it is expected to contribute c.RM6.2m in PBT (about 2.4% of FY25F PBT) over FY25F–FY27F, based on an assumed 11% PBT margin. Including this award, the Group’s total contract wins for the year have risen to RM1.2bn across 10 projects, lifting its outstanding order book to RM3.8bn (2.1x FY24 revenue). These developments further enhance earnings visibility and underscore the sustained momentum in the Group’s contract flows.

 

Earnings Revision. No revision to earnings as this contract win falls within our order book replenishment assumption for FY25.

 

Valuation & Recommendation. We maintain our HOLD recommendation on KERJAYA with an unchanged TP of RM2.34, based on 15.0x FY26F EPS of 15.5 sen, along with a three-star ESG rating.

 

Risks. Rising material costs, labour shortages, and high-rise office oversupply in the property sector.

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