KUALA LUMPUR: There was some buying interest in the trading stock of Kerjaya Prospek Bhd after it announced it had secured a RM256.4mil contract to build a proposed project in Elmina West in Shah Alam.
At Tuesday's open, shares in the construction firm rose five sen or 2.17% to RM2.35 apiece, extending the positive interest that was building in the stock since the start of 2025.
According to its announcement yesterday, the contract from an indirect subsidiary of Eastern & Oriental Bhd
(E&O) includes three phases of a proposed project, comprising 260 units of three-storey terrace houses alongside a clubhouse, landscaping works and related infrastructure.
RHB Research said in a note it expects the net margin for the contract to be 9% to 10%.
It said there could also be other opportunities for the group in Elmina West, including the launch of over 110 shophouses by E&O in 2026.
According to the research firm, Kerjaya Prospek's latest construction orderbook now stands at about RM4.2bil. It has tenders worth RM3bil to RM4bil, with about RM1.5bil related to a data centre and logistics warehouse jobs.
Moving forward, RHB said Kerjaya Prospeks's growth prospects are backed by steady job flows from Penang and the Klang Valley, coupled with stronger property development contributions.
"No changes in earnings estimates as the latest job win is within our FY25F job replenishment assumption of MYR1.6bil.
"As such, our sum-of-parts-derived target price of RM2.67 (with a 2% ESG premium baked in) is unchanged," it said while reiterating its "buy" call.
It said an earlier-than-expected win for new industrial jobs (such as data centres) in 1H25 would serve as a rerating catalyst.
