KUALA LUMPUR: Kerjaya Prospek Bhd may be receiving more contracts from HCK Capital Group Bhd
following its second contract win of RM280mil from the latter.
Yesterday, Kerjaya announced that it had secured a contract for a proposed project rebranded as Edumentro in Subang from HCK Capital, which comprises main building works for four towers on a three-storey podium and a four-level basement car park.
"Should Kerjaya continue to deliver, we are sanguine of the possibility of more contracts from HCK in the future," said Kenanga research.
It said in a research note that it is neutral on the win as it falls within its replenishment target of RM1.2bil.
"The new job win brings Kerjaya's YTD replenishment to RM435m, making up 36% of our FY19E replenishment target of RM1.2b," it said.
Assuming a conservative pre-tax margin of 15%, the project is expected to contribute about RM31.5mil to the group's bottomline.
Kerjaya's outstanding order book currently stands at about RM3.3bil, which provides two to 2.5 years' visibility.
Moving forward, Kenanga is anticipating another repelenishment worth about RM400mil from Kerjaya's major shareholder Datuk Tee's private property arm for a mixed development in Old Klang Road.
Kenanga maintained market perform on Kerjaya with an unchanged target price of RM1.20 pegged to an unchanged valuation of 10x PER on FY19E construction earnings.
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