PETALING JAYA: Analysts are mostly positive on Kerjaya Prospek Group Bhd
’s resilient growth, given the property developer’s capability to expand its client portfolio, with contract replenishment remaining on track.
The group’s latest RM529mil premium residential contract from a new client, Bandar Raya Developments Bhd (BRDB), represents Kerjaya’s seventh job win for the financial year 2026 (FY26).
In a report, RHB Research expects the net margin for the new project to be in the range of 8% to 10%.
“Based on our estimates, Kerjaya’s RM4.5bil balance order book (including the latest win) has about 70% to 80% of jobs from related parties such as Kerjaya Prospek Property Bhd and Eastern & Oriental Bhd (E&O),” the research house added.
Taking the latest win into account, Kerjaya has secured RM1.6bil worth of new projects year-to-date versus its FY26 forecast RM2bil target and RHB Research’s RM2.3bil job replenishment assumption for the same financial year.
The brokerage also said “the icing on the cake would be if Kerjaya secures new jobs from the industrial segment – its last job win in this category was back in September 2023 for Texas Instruments”.
RHB Research has maintained a “buy” call on the stock with a target price of RM3.19 per share.
Phillip Capital Research, which has kept Kerjaya’s target price at RM3.05, said its earnings forecasts were unchanged as “this latest job win falls within our 2026 estimated replenishment target”.
It viewed the current valuation at 10 times the 2027 estimated price-to-earnings ratio as undemanding, given Kerjaya’s solid earnings outlook and an attractive dividend yield of 5%.
Meanwhile, Apex Securities Research viewed the new contract award positively, as it introduces an additional revenue stream over the next three years, while strengthening the group’s order book.
“Assuming a 10% profit after tax (PAT) margin, the project is projected to contribute about RM52.9mil in PAT over its 33-month duration, representing 23.3% of our FY26 forecast,” the research house noted.
Going forward, Apex Research said order-book replenishment is expected to remain well supported by a steady pipeline of projects from related parties, including Kerjaya Prospek Property and E&O.
The research house said Kerjaya has set a target of RM2bil in new contract wins for FY26, with a deliberate shift towards third-party projects aimed at rebalancing its mix to 35% external and 65% internal jobs.
This strategy will be further supported by a broadened presence in infrastructure-related segments, encompassing industrial, data centre and commercial projects, it added.
Apex Research has maintained a “buy” call on Kerjaya with an unchanged target price of RM3.10.
In a report, TA Research said including the latest win, Kerjaya’s FY26 total new job wins reached RM1.6bil and lifted its total unbilled construction order book to RM4.5bil.
At the current order book replenishment rate, the group had achieved approximately 80.4% of its FY26 total new job win assumption of RM2bil.
TA Research has maintained a “buy” call on the stock with an unchanged target price of RM3.27.
Meanwhile, an analyst with a local bank-backed brokerage expects the maiden collaboration to also pave the way for Kerjaya to participate in BRDB’s future developments.
These include the RM2.6bil gross development value Federal Avenue mixed-use project, and premium residential and retail developments in Damansara, as well as other projects across Selangor and Johor.
He added Kerjaya’s other potential projects for the rest of FY26 include E&O’s recently-launched AVÉA, Aspen Group’s Mezon@Park Enclave in Batu Kawan and Kerjaya Prospek Property’s project in Batu Kawan.
