PETALING JAYA: Kerjaya Prospek Group Bhd
has secured an RM858mil contract for mechanical, electrical and plumbing (MEP) fit-out works for a data centre (DC) development in Iskandar Puteri, Johor.
In a filing with Bursa Malaysia, the construction group said its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd accepted a letter of award from a DC developer for the project.
“The contract covers the execution of MEP fit-out works for a DC development at Iskandar Puteri, Johor,” Kerjaya Prospek said.
The contract is scheduled to commence in the third quarter of financial year 2026 (3Q26) and is expected to be completed within eight months from the commencement date.
Kerjaya Prospek said the contract would provide an additional revenue stream for the group over the next year and further strengthen its existing order book.
The contract is also expected to contribute positively to the group’s earnings and net assets per share for the financial years ending 2026 and 2027.
Kerjaya Prospek said this latest win brings its total new contract wins for 2026 to RM3.2bil, further strengthening the group’s earnings visibility and construction pipeline.
“Meanwhile, our outstanding order book has reached a record RM5.9bil, providing a strong foundation for sustained revenue contribution over the coming years,” the company noted.
An analyst said the contract win is a positive development for Kerjaya Prospek.
“It provides a significant boost to the group’s order book visibility while strengthening the company’s exposure to Malaysia’s rapidly expanding DC sector,” he told StarBiz.
Additionally, he said that the sizeable award should support earnings visibility over the medium term and reduce the immediate need for further order book replenishment.
“More importantly, it reinforces Kerjaya Prospek’s credentials in DC construction, a segment benefiting from sustained demand for cloud computing, artificial intelligence and digital infrastructure.”
Another analyst noted that the contract also provides greater diversification from the group’s traditional residential construction business and could position the company to capture more DC opportunities in the future.
“That said, the impact on earnings will ultimately depend on the project’s execution period and margins.
“DC-related works can be highly competitive, with margins potentially lower than those of conventional property construction projects.
“Overall, the contract should be viewed positively, particularly from a strategic perspective, as Kerjaya Prospek strengthens its foothold in a high-growth segment while extending its earnings and order-book visibility,” the analyst added.
Kerjaya Prospek’s net profit rose 22.5% to RM66.7mil in 2Q26 from RM54.44mil in the previous corresponding period.
Moreover, the company’s revenue during the quarter fell to RM403.09mil in 2Q26 compared to RM539.46mil a year earlier, mainly due to lower progress in construction activities.
Construction remained the key contributor for the group, accounting for nearly 90% of quarterly revenue.
For the six-month period ended June 30, 2026, Kerjaya Prospek’s net profit rose to RM124.02mil compared to RM100.51mil a year ago.
This is despite its revenue dropping to RM849.9mil from RM1.01bil previously.
