KUALA LUMPUR: Kerjaya Prospek Group Bhd is expected to post a profit of between RM34 million and RM36 million for its first quarter ending March 31, 2024 (Q1 2024), translating to between 21 per cent and 28 per cent year-on-year (YoY) growth.
RHB Research stated in a note that growth during the quarter will be backed by the better progress of ongoing projects such as The Meg and Astrum Ampang.
The firm forecasts a three-year earnings compound annual growth rate of 12 per cent for the financial year 2023 (FY23) until FY26, backed by its steady job replenishment trends coupled with better property development contributions.
"Aside from the Seri Tanjung Pinang phase 2 (STP2) development in Penang, which has facilitated Kerjaya Prospek's constant job replenishment, we highlight the Bukit Bintang City Centre (BBCC) project, which could bring about further opportunities for Kerjaya Prospek."
"Works for BBCC Signature Tower have yet to be tendered out, and we do not discount the possibility of Kerjaya Prospek (together with Samsung C&T Corp.) eyeing the project when tenders are advertised. We estimate the package for the 80- storey BBCC Signature Tower to be well in excess of RM500 million," it said in a note.
The firm maintained a "buy" call on the stock with a target price of RM2.15.
"We understand that KPG's partner Samsung C&T, via a consortium with a Taiwan company, secured a US$1.6 billion contract for expansion works at the Taiwan Taoyuan Airport in March 2021.
"Therefore, we continue to view the stock's valuation of 13 times the FY25F price-to-earnings ratio as unjustified, as the counter was trading at 15 times during the 2017 construction upcycle."