KERJAYA has recently revealed that its indirect wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd, has secured a RM98.8 mil lump sum contract from a new client, Sena Letrik Sdn Bhd.
The project covers main building works, as well as mechanical, electrical and external components, for the development of a private medical facility—Sena Specialist Hospital Seremban 2, located in Negeri Sembilan.
Construction is set to begin immediately, with completion targeted within an 18-month timeframe.
While Kenanga acknowledged the latest contract win, which brings job wins to RM802.3 mil, they remain neutral as the progress is well within their 2026 job replenishment assumption and management’s target of RM2 bil.
Its outstanding order book has now risen to RM4.5 bil, which will keep them busy for the next three years.
“We are cautious that in view of rising input cost pressures, profit margins may face headwinds. Furthermore, non-residential projects typically command slightly lower margins than the 10% PAT margin usually achieved in residential projects,” said Kenanga.
Management has set a 2026 job replenishment target of RM2 bil, supported by a RM2 bil-RM3 bil tender book for building jobs.
Together with JV partner Samsung, KERJAYA is also tendering for local factory and data centre projects.
Additional opportunities include RM2 bil worth of infrastructure works at Andaman Island. In property development, its 55%-owned Rivanis (a seven-year redevelopment project in Butterworth) will sustain construction and property earnings over the medium term.
“We continue to like KERJAYA for its innovative and hence high-margin formwork construction method,” said Kenanga.
Also, KERJAYA has a lean and hands-on management team with a strong execution track record, and its strong earnings visibility underpinned by a sizeable outstanding order book and recurring orders from related companies (such as E&O, KPPROP) of at least RM1 bil a year.
Kenanga maintains its Outperform on KERJAYA. Risks to their call include further deterioration in the prospects for building jobs, rising input costs, and liquidated ascertained damages from cost overrun and delays. —Apr 6, 2026
Main image: Kerjaya Prospek
