PETALING JAYA: Construction firm Kerjaya Prospek Group Bhd
’s outlook remains strong given the company’s solid order book, steady earnings and dividend payouts.
Analysts continue to be positive on the stock, with BIMB Research noting that despite the company’s steady earnings and good dividend payout, the stock still trades at a forward price-earnings multiple of around 11.7 times, or about a 14% discount to its peers at around 13 times.
The research house has maintained a “buy” call on the stock with an unchanged target price of RM2.59 and expects a dividend payout of 12 sen for this year.
Kerjaya Prospek’s results for the second quarter of this year (2Q25) met market expectations and the builder declared a second interim dividend of three sen.
TA Research, which has raised its target price on the company to RM3.02 from RM2.97 with a “buy” recommendation, said Kerjaya Prospek has secured RM870.3mil in new contracts year-to-date, bringing its order book to RM3.9bil as of end-June or equivalent to 2.2 times last year’s construction revenue and providing earnings visibility till 2028.
The research house said that Kerjaya Prospek remains confident of achieving at least RM1.6bil of contracts for this year supported by a robust pipeline from sister company Eastern & Oriental Bhd that has planned property launches with an estimated gross development value of RM2bil across this year and next year.
It said the company is well positioned to secure a data centre project located in the Klang Valley worth an estimated RM1bil to RM1.5bil thanks to its joint venture capabilities with Samsung C&T Corp.
