KUALA LUMPUR (Aug 2): Kerjaya Prospek Group Bhd’s shares slid in the early trade on Wednesday (Aug 2), despite securing earthworks and infrastructure contracts from Eastern & Oriental Express Sdn Bhd and Persada Mentari Sdn Bhd worth RM46 million.
At 10.05am, the construction company shares fell one sen to RM1.13, with 44,800 shares exchanging hands.
In a research note on Wednesday, Kenanga Investment Bank said it is positive on the wins which brought the company’s year-to-date total wins to RM984 million or 66% of its financial year 2023 (FY2023) target, putting it firmly on track to hit its FY2023 full-year job win assumption of RM1.5 billion.
The latest win also raised the company’s outstanding order book to RM4.4 billion.
“We expect these contracts’ profit after tax margin to be 10% and we maintain our ‘outperform’ recommendation on Kerjaya Prospek with a target price of RM1.50, valuing its construction business at 13x forward PER (price-to-earnings ratio),” it said.
Currently, Kerjaya Prospek’s tender book stands at between RM1.5 billion and RM2.0 billion from building or reclamation jobs from its sister companies such as E&O and Kerjaya Prospek Property, and from industrial warehouse/factories, alongside its joint venture with Samsung, and third-party building jobs in the Klang Valley.
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Source: EdgeProp.my
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