The RM204mil contract to construct Maya Bay Residence at Gamuda Cove represents Kerjaya Prospek's fourth win year to date, and brings its cumulative wins to RM1.2bil.
Kenanga upgraded its replenishment target to RM1.5bil from RM1.3bil previously following this job win, which brings its forecast in line with that of Kerjaya Prospek's management.
In line with this revision, the research house raised its FY21 earnings projection by 3% while maintaining FY20 earnings forecasts.
Assuming 11% net margin, the Gamuda project will contribute RM22.4mil to bottom-line over the course of the project, or RM10mil per annum for the next two to three years, said Kenanga.
"Current outstanding order-book of RM3.6b provides 3x revenue cover.
"Next year (FY21), Kerjaya will be launching two property projects namely Monterez, Shah Alam (GDV: RM250m) and Yakin Land, North Kiara (GDV: RM380m), which will provide an earnings kicker to its profits for the following three years," it added.
Kenanga maintained its "outperform" call on the stock with a higher target price of RM1.50 from RM1.02 previously.
In a filing with Bursa Malaysia yesterday, Kerjaya Prospek said the Maya Bay Residence development comprises three blocks of serviced apartments with 972 units on top of an eight-storey carpark podium, which also houses 35 retail lots.
The contract spans 27 months with tentative completion in December 2022.
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