Kerjaya Prospek’s stock bounces after job win, analysts see buoyant earnings ahead
There are still construction jobs worth RM520 million from property launches by related party Eastern & Oriental Bhd for Andaman Island this year, according to RHB Investment Bank’s estimates.
KUALA LUMPUR (April 8): Kerjaya Prospek Group Bhd’s (KL:KERJAYA) stock bounced on Tuesday after the construction firm added another job to its books while analysts see buoyant earnings ahead.
Shares of Kerjaya Prospek rose about 3% to RM1.90, tracking gains in the broader market, as investors cheered the RM291 million contract, its fourth win so far this year. The job could produce about RM29 million net profit over the next three years based on its usual margins, analysts said.
There are still construction jobs worth RM520 million from property launches by related party Eastern & Oriental Bhd (KL:E&O) for Andaman Island this year, according to RHB Investment Bank’s estimates.
“We learnt that there are still more dredging and reclamation works up for grabs for Phases 2B and 2C of Andaman Island” which could be in excess of RM300 million, the research house said and kept the stock on ‘buy’ call.
Kerjaya Prospek announced on Wednesday that it has secured a contract to build a 50-storey service apartment in the Adaman Island from E&O. The work is set to begin on June 23, with completion expected within 38 months, Kerjaya Prospek noted.
Year to date, Kerjaya Prospek has retreated nearly 15%. Still, seven out of eight analysts covering the stock have “buy” recommendations and one has maintained a “hold” rating.
Apart from E&O, Kerjaya Prospek’s contract pipeline remains robust, thanks to another related company Kerjaya Prospek Property Bhd (KL:KPPROP), which has upcoming projects with gross development value totalling RM1.3 billion combined, said Phillip Capital.
Further, Kerjaya Prospek’s external tender book remains sizeable at between RM2 billion and RM3 billion, it said.
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Source: EdgeProp.my
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