KUALA LUMPUR: Kerjaya Prospek Group Bhd's recent contract win from a unit of UEM Sunrise Bhd brings its year-to-date (YTD) contract wins to Kenanga Investment Bank Bhd (Kenanga Research) RM1.6 billion target for financial year 2024.
The win boosts YTD new job wins to RM1.55 billion.
Kenanga Research said the latest contract also lifted Kerjaya Prospek's outstanding orderbook to RM4.7 billion.
Meanwhile, its tender book stood at RM4 billion, comprising RM2 billion building jobs and three industrial jobs including data centre bids worth RM2 billion.
"While its YTD contract win of RM1.55 billion is very close to our financial year 2024 (FY24) assumption of RM1.6 billion, we maintain our assumption as the August contract win of RM275.3 million is to start construction work from January 2025, which will not be recognised in FY24. Thus, we keep our estimates unchanged," it said in a note.
Kerjaya Prospek's subsidiary, Kerjaya Prospek (M) Sdn Bhd, bagged the contract to build a 57-storey building in Batu, Kuala Lumpur worth RM292.8 million for Mega Legacy (M) Sdn Bhd.
The contract will commence this month with a construction period of 38 months.
Kenanga Research said it continues to favour Kerjaya for its innovative and high-margin formwork construction method, its lean and hands-on management team with a strong execution track record, its strong earnings visibility underpinned by a sizeable outstanding order book and recurring orders from relatedcompanies of at least RM1 billion a year. It maintained its "Outperform" call on the stock.