Higher-margin infrastructure jobs to anchor Vestland’s earnings outlook


PETALING JAYA: Vestland Bhd is expected to see stronger earnings growth over the next two years, supported by a robust order book, higher-margin infrastructure projects and an increasing contribution from public-sector contracts.

Kenanga Research said the construction group’s earnings could grow by 41% and 57% in financial year 2026 (FY26) and FY27, respectively, as its design-and-build capabilities and improving project mix support revenue expansion and margin recovery.

“We project FY26 and FY27 net profit of RM49.4mil (41% year-on-year or y-o-y rise) and RM77.5mil (57% y-o-y rise), supported by an outstanding order book of RM2bil and a tender book of RM5bil,” the research house said in a report yesterday.

It noted Vestland had secured RM1.81bil in new contracts year-to-date, equivalent to its cumulative contract wins throughout FY23 to FY25. Of the latest contract wins, five projects worth a combined RM1.21bil were awarded by its key client Armani Group, with which Vestland has maintained a relationship since securing its maiden design-and-build contract for Residensi Armani Petaling in 2020.

Vestland secured RM939.4mil in contracts in FY23, RM665.6mil in FY24 and RM217.4mil in FY25.

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