KERJAYA: Robust Divisional Performance Drives Profit Growth, Positive Outlook Maintained
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
A leading construction and property group reported a significant surge in its fourth-quarter and full-year financial performance, largely attributed to robust contributions from its core construction and property development segments. The results, while strong, came in broadly aligned with both internal and consensus estimates, showcasing consistent operational execution.
Performance Review
For the fourth quarter of fiscal year 2025 (4QFY25), the group’s net profit jumped by an impressive 54.6% year-on-year to RM66.7 million. This strong quarterly performance contributed to a full-year net profit of RM219.0 million, representing a 25.6% increase compared to the previous year. Revenue for 4QFY25 also saw a healthy increase of 12.3% year-on-year, reaching RM671.7 million, underpinned by enhanced activities across both primary divisions.
The construction segment recorded a modest 1.8% year-on-year revenue growth to RM555.7 million, reflecting a general uptick in work activities. More notably, the property development segment experienced a substantial 123.9% year-on-year revenue increase to RM115.2 million, driven by the ongoing progress of key projects such as The Vue @ Monterez and Papyrus @ North Kiara. The construction division’s profit before tax also rose significantly by 44.4% year-on-year to RM66.9 million, benefiting from both increased revenue and improved operational efficiencies. Meanwhile, the property division’s profit before tax grew 27.0% year-on-year to RM9.6 million, supported by higher pre-sales and significant advancements in its two main development projects.
Future Outlook and Strategic Diversification
The group maintains a strong future outlook, supported by an outstanding construction order book valued at RM3.9 billion. This substantial backlog provides clear earnings visibility for the next two to three years, underscoring the construction segment’s role as a primary revenue driver. Year-to-date, new contract wins have reached RM0.7 billion, achieving 35.2% of the FY26 target of RM2 billion. Furthermore, the group is strategically expanding its portfolio, leveraging its core expertise to explore high-growth opportunities in emerging sectors such as data centers and industrial developments.
Analyst Recommendation
Following these results, TA Securities maintains a BUY recommendation on the stock, setting a target price of RM0.25, which represents a 25.0% upside from the last traded price of RM0.20.
