KUALA LUMPUR: Kerjaya Prospek Group Bhd is seeing investor interest on news that it secured a RM155mil contract in Cyberjaya from HCK Capital Bhd.
At 9.15am, the counter was up 1.6% or two sen to RM1.28 per share with 51,600 units traded.
In a research note, Kenanga research said it is neutral on the job win as it falls within its FY19E replenishment target of RM1.2bil.
The contract, which is Kerjaya Prospek's first for the year, makes up 13% of the target.
"Assuming a conservative pre-tax margin of 15%, we expect the project to contribute c.RM8.7m per annum to bottom-line over the next 2 years. The replenishment will bring its outstanding order-book to c.RM3.1b with 2-2.5 years’ visibility," said the research house.
In its outlook, Kenanga said Kerjaya could be the least affected from the cancellation of major infrastructure projects in the country as it has no exposure to government-related jobs.
It added that the recent job win showed the confidence a reputable developer such as HCK Capital Bhd had with Kerjaya's delivery.
Kenanga anticipates Kerjaya will score a further job win worth about RM400mil from its major shareholder Datuk Tee's private property arm while it also stands a good chace of winning more contracts in Penanga, mainly from E&O's Seri Tanjung Pinang 2 project.
The research house has downgraded Kerjaya to market perform due to its recent share price rebound. The target price remains at RM1.20, pegged to an unchanged valuation of 10x price-earnings on FY19E construction earnings.