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KUALA LUMPUR (May 20): Kerjaya Prospek Group Bhd (KL:KERJAYA) has secured two contracts worth RM102.6 million for construction works at Andaman Island, Penang, expanding its outstanding order book to RM4.4 billion.
In a bourse filing on Wednesday, Kerjaya said the two letters of award were granted to its wholly owned unit, Kerjaya Prospek (M) Sdn Bhd, by Persada Mentari Sdn Bhd, an 80%-owned subsidiary of Eastern & Oriental Bhd (KL:E&O). The contract wins provide earnings visibility for the next one to two years.
The first contract, worth RM69.6 million, involves the construction of 28 units of three-storey terrace houses and 18 units of three-storey semi-detached houses at Seksyen 2. Works are expected to start on Aug 1 and be completed within 24 months.
The second job, worth RM33.01 million, involves piling and earthworks for a 53-storey serviced apartment block that comprises one basement level and two ground levels at Bandar Tanjung Pinang. Works are expected to start on July 1 and be completed within 12 months.
The contract wins came a day after Kerjaya secured a RM174.2 million job from an IJM Land Bhd unit, bringing total new wins to RM276.8 million so far in May.
The group’s total contract wins for the financial year ending Dec 31, 2026 have now reached RM1.1 billion.
According to Bloomberg, all nine analysts covering Kerjaya have ‘buy’ calls on the stock. The average 12-month target price is RM3.12 per share, with target prices ranging from RM2.73 to RM3.46.
According to AskEdge data, Kerjaya is currently trading at a price-earnings ratio of 11.6 times, the lowest among its peers. In comparison, Gamuda Bhd (KL:GAMUDA) is trading at 26 times, IJM Corporation Bhd (KL:IJM) at 24.5 times and Sunway Construction Group Bhd (KL:SUNCON) at 23.9 times.
At the time of writing, Kerjaya shares were unchanged at RM2.08, valuing the company at RM2.64 billion.
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