Analysts say that Kerjaya Prospek avoided seeking exposures to major public infrastructure projects such as MRT2, LRT3 and Pan Borneo Highway. Instead, the group focused on its niche of constructing high-rise buildings for private property developers
KUALA LUMPUR: UOB Kay Hian Malaysia Research expects Kerjaya Prospek Group (Kerjaya) to either meet or beat its RM1bil orderbook replenishment target for 2018.
It said on Friday the job win of RM353mil building job from BBCC Sdn Bhd (BBCC) represents 35% of its RM1bil orberbook replenishment target for the year.
“We remain confident that Kerjaya would secure at least half of its 2018 contract award target by mid-18. Presently, its tenderbook stands at about RM1bil, which comprises mainly high-rise residential buildings and commercial properties,” it said.
UOB Kay Hian Research said the contract from BBCC was to build: a) an eight-storey car park podium, b) a six-storey car park, and c) two high-rise buildings.
The job is expected to take 36 months and is targeted for completion by April 22, 2021. BBCC is a joint venture between Urban Development Authority, Ecoworld and the Employees Provident Fund.
“Project to contribute RM28.6m profits in 2018-2020. Assuming a 10% net margin, we estimate this project would contribute RM1.8mil, RM12mil and RM14mil in net profits in 2018-2020 respectively.
“New job lifts outstanding orderbook to RM3.1bil. This is Kerjaya’s first win for the year, boosting its outstanding construction orderbook to RM3.1bil, implying an orderbook cover of 3.5 times 2017 construction revenue,” said the research house.
Key jobs in its orderbook include: a) The Vertu Resort by Aspen (RM442mil), b) Arte Mont Kiara (RM339mil), and c) a building job in Medini, Iskandar Malaysia (RM313mil).
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