Plenty of jobs ahead for Kerjaya Prospek after its first contract win in 2025, analysts say

• For now, Kerjaya has outstanding jobs on hand worth RM4.2 billion that will keep the company busy for the next three years following a contract award from its sister company Eastern & Oriental Bhd.

KUALA LUMPUR (Jan 7): There are still ample near- to medium-term opportunities for Kerjaya Prospek Group Bhd (KL:KERJAYA) after the construction firm secured its first contract for the year, analysts said.

Up for grabs are the dredging and reclamation works for further phases of Seri Tanjung Pinang 2 in Penang, potentially worth more than RM500 million, as well as from upcoming launches with gross development value (GDV) of over RM500 million in the next six months, RHB Investment flagged.

The outlook for Kerjaya is upbeat, backed by steady job flows from Penang and the Klang Valley, coupled with stronger property development contributions, the research house said and kept its ‘buy’ call.

For now, Kerjaya has outstanding jobs on hand worth RM4.2 billion that will keep the company busy for the next three years following a contract award from its sister company Eastern & Oriental Bhd (KL:E&O).

The RM246.4 million contract announced on Monday is for construction works in Elmina West, Selangor. The contract is a recurrent related party transaction as Datuk Seri Tee Eng Ho is the chairman and major shareholder of both Kerjaya and E&O.

The contract would contribute RM29 million to net profit across the 2025-2027 construction period based on a 10% margin, according to estimates from Phillip Capital, which has the stock on ‘buy’ call.

“We expect contract flows to remain robust,” the research house said, noting sister companies E&O and Kerjaya Prospek Property Bhd (KL:KPPROP) are planning launches totalling up to RM2.2 billion in 2025 that could translate into RM1 billion contract opportunities for Kerjaya.

Near-term prospects include the upcoming Shah Alam project and Marina Apartments, together worth RM935 million in estimated GDV, Phillip Capital said. All in all, Kerjaya is expected to replenish its order book by RM1.6 billion this year, it added.

Out of the eight research houses covering the stock, six have 'buy' calls, while the remaining two recommend 'hold'. The consensus 12-month target price is RM2.43, according to Bloomberg, implying a potential return of 5.7% from the last traded price.

Kerjaya has also benefited from broader optimism on the construction sector by investors betting on the rollout of private and public projects.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!