KERJAYA: New Contract Win Boosts Order Book, Maintains Outperform Rating

Kerjaya Prospek Group Berhad (KPGB) has commenced 2026 with a significant contract win, securing a RM201.3 million building project. The contract, awarded by related-party Kerjaya Prospek Property, involves the construction of two 39-storey residential apartment blocks in Damansara Damai, Selangor.

Project Details and Scope

The new project encompasses the development of two residential towers, complete with associated podium parking, commercial spaces, and other amenities. Works are slated to begin on April 1, 2026, with an anticipated completion timeline of 40 months.

Strengthening Order Book and Earnings Visibility

This contract represents KPGB’s first win for 2026 and accounts for 10.1% of the group’s FY26 job replenishment target of RM2.0 billion, aligning with its internal guidance. The addition of this project has bolstered KPGB’s outstanding order book by 4.8%, bringing the total to RM4.4 billion. This robust order book provides clear earnings visibility for the next three years.

The contract is expected to contribute an average of 1.6% per annum to the group’s earnings over the 40-month contracted period, translating to approximately RM4.8 million annually from FY26 to FY29. Public Investment Bank noted that its earnings estimates remain unchanged, as this project was already incorporated into its FY26 order book replenishment assumptions.

Future Outlook and Recommendation

KPGB continues to strategically enhance its project portfolio by leveraging its established construction capabilities. The company is also exploring expansion into high-growth sectors such as data centers and industrial developments, signalling a proactive approach to market opportunities.

Public Investment Bank has reiterated its Outperform call on KPGB, maintaining an unchanged target price of RM3.10. The current price stands at RM2.77, suggesting an expected return of 11.9%.