PETALING JAYA: Analysts are bullish on Kerjaya Prospek Group Bhd
’s RM226mil contract win from Aspen Vision City Sdn Bhd as it will uplift the company’s net earnings and order book throughout the construction period.
The latest contract has boosted Kerjaya’s year-to-date job awards to RM1.5bil, and has met the Kenanga Research’s full-year assumption of RM1.5bil and surpassed the company’s own target of RM1.2bil.
The latest contract boosted its outstanding order book to RM4.7bil and the brokerage expects the contract to fetch a profit after tax (PAT) margin of 10%. Its tender book stands at RM1.5bil to RM2bil.
In a filing with Bursa Malaysia on Tuesday, the company said it had been awarded the contract by Aspen for the design and building of two 37-storey apartment blocks with 980 residential units, and a seven-storey podium consisting of carparks, community recreational facilities and shop lots in Seberang Perai Selatan, Penang.
The contract period is for 42 months, according to the statement.
Kenanga Research liked Kerjaya for its innovative and hence high margin formwork construction method, lean and hands-on management team with a strong execution track record, earnings visibility underpinned by a sizeable outstanding order book as well as recurring orders from related companies.
