PETALING JAYA: KKB Engineering Bhd
’s recent contracts to supply pipes and poles worth RM80mil have raised its year-to-date order book wins to RM292mil and outstanding order book to RM347mil.
The order book could inflate further as RHB Research estimated that the Sarawak-based company’s current tender book for engineering, construction and manufacturing to be around RM600mil and RM1bil for oil and gas (O&G) fabrication-related jobs, many of which are expected to be awarded in the first quarter and beyond.
KKB’s order book could grow as the research house estimated a success rate of 30% to 40% on its O&G contract bids while the Sarawak state government has allocated RM4bil to enhance water infrastructure in the state and achieve full clean water supply coverage by 2030.
RHB Research estimated KKB’s new job wins in its financial year 2026 ending Dec 31 (FY26), to hit about RM600mil.
It added that the last time KKB secured a project from the water infrastructure space was in December 2024. The research house believes the upcoming water supply schemes in Sabah may also serve as a potential job opportunity for KKB.
RHB Research has maintained its “buy” call on the stock with a target price of RM1.42 a share, with the valuation pegged to its FY26 earnings per share and an unchanged target price-to-earnings (PE) multiple of 17 times.
“KKB’s target PE is near the Bursa Malaysia Industrial Production Index’s 10-year mean.
“This is justified by its position – it could benefit from Sarawak’s higher allocation of RM6bil for 2026 (2025: RM5.9bil) under Budget 2026,” RHB Research noted in a report following the latest job wins. The stock also offers a yield of 3% for FY26.
