Kerjaya Prospek Group Bhd - Order Book Gets A Lift from New Contract Win
Tue, 16-Jun-2026 07:39 am
by Research Team • Apex Research

Counter

KERJAYA (7161)

Target Price (RM)

3.10

Recommendation

Buy

  • KERJAYA has secured a RM529.3m building works contract for the construction of residential development in Bukit Tunku, Kuala Lumpur, commencing on 15 June 2026.

  • Assuming a PAT margin of 10%, the contract is expected to contribute c.RM52.9m (or 23.3% of FY26F PAT) over FY26F-FY29F.  

  • Expect KERJAYA to remain resilient moving forward, underpinned by its sizeable RM4.5bn outstanding order book.

  • Maintain BUY with an unchanged TP of RM3.10, based on 15.0x PE applied to FY27F EPS of 20.6 sen, alongside a three-star ESG rating.

 

Secured RM529.3m Residential Development Construction Project. KERJAYA has secured a RM529.3m contract for building works related to residential development in Bukit Tunku, Kuala Lumpur. The contract was awarded by BRDB Development Sdn Bhd and the project involves building eight blocks of villa residences totalling 146 units, two car park blocks and two basement levels, along with common facilities and a clubhouse at Taman Duta, Bukit Tunku, Kuala Lumpur. Construction is scheduled to commence on 15 June 2026, and is slated for completion within 33 months.

 

Our View. We view this contract award positively, asit introduces an additional revenue stream over the next three years while strengthening the Group’s order book. Assuming a 10% PAT margin, the project is projected to contribute c.RM52.9m in PAT over its 33-month duration, representing 23.3% of our FY26 forecast. Execution risk remains manageable given the Group’s well-established track record and strong execution capabilities in high-rise residential developments, which continue to form its core area of expertise. With this latest win, KERJAYA's year-to-date contract wins have climbed to RM1.6bn, lifting its outstanding order book to a healthy RM4.5bn. This translates into a solid book-to-bill ratio of 1.9x based on our FY26F revenue forecast, providing strong medium-term earnings visibility.

 

Outlook. We expect KERJAYA to maintain resilient performance amid prevailing macro headwinds, supported by a substantial unbilled order book that translates to a book-to-bill ratio of 1.9x based on FY26F revenue. Going forward, order book replenishment is expected to remain well-supported by a steady pipeline of projects from related parties, including KPPB and E&O. The Group also recently announced that it, through its wholly-owned subsidiary, Futuprop Sdn. Bhd. (FSB), has entered into a joint venture agreement with Aspen Vision Development Sdn. Bhd. (AVD) to jointly develop a 34.8-acre mixed-use project in Prai, Penang, on land owned by Railway Assets Corporation (RAC). This marks a further step in the Group's ongoing expansion into the northern property market. In addition, the Group has set a target of RM2.0bn in new contract wins for FY26, with a deliberate shift towards third-party projects aimed at rebalancing its mix to 35% external and 65% internal jobs. This strategy will be further supported by a broadened presence in infrastructure-related segments, encompassing industrial, data centre, and commercial projects.

 

Earnings Revision. We make no changes to our earnings forecast as the award falls within our orderbook replenishment assumption of RM1.8bn for FY26.

 

Valuation & Recommendation. We maintain our BUY recommendation on KERJAYA with an unchanged TP of RM3.10, based on a 15.0x PE applied to FY27F EPS of 20.6 sen, alongside a three-star ESG rating.

 

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

Read more details in:

Disclaimer

The report is for internal and private circulation only and shall not be reproduced either in part or otherwise without the prior written consent of Apex Securities Berhad. The opinions and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered by this report.

Opinions, estimates and projections in this report constitute the current judgment of the author. They do not necessarily reflect the opinion of Apex Securities Berhad and are subject to change without notice. Apex Securities Berhad has no obligation to update, modify or amend this report or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Apex Securities Berhad does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against Apex Securities Berhad. Apex Securities Berhad may from time to time have an interest in the company mentioned by this report. This report may not be reproduced, copied or circulated without the prior written approval of Apex Securities Berhad.

Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.033030 4.065410
EUR 4.697182 4.702074
CNY 0.598785 0.599401
HKD 0.515009 0.518640
SGD 3.147283 3.169506