LAST Friday, KERJAYA announced that its wholly owned subsidiary, Kerjaya Prospek Sdn Bhd, has been awarded a fixed lump-sum RM225 mil building contract by Majestic Gen Sdn Bhd to construct a 50-storey serviced apartment and commercial development at Jalan Lepas, Johor Bahru.
This marks its second contract from Majestic Gen. Works are scheduled to commence in Jan 2026 with a construction period of 38 months.
This contract win, KERJAYA’s 12th in financial year 2025 (FY25), brings year-to-date (YTD) new jobs to RM1.79 bil, matching Kenanga’s FY25 assumption of RM1.8 bil and exceeding the company’s RM1.6 bil guidance.
The project is expected to deliver a 10% profit after tax margin. KERJAYA’s total outstanding order book now stands at RM4.3 bil, providing earnings visibility for the next three years.
Management recently set a new FY26 job replenishment target of RM2 bil during the quarter three financial year 2025 (3QFY25) briefing, 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.
Management has unveiled a new FY26 job replenishment target of a record RM2 bil, underpinned by an active tender book of RM2 bil–RM3 bil.
Kenanga continue to like KERJAYA for:
(i) its innovative and hence high-margin formwork construction method.
(ii) its lean and hands-on management team with a strong execution track record.
(iii) 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.
“With expectations of stronger job wins in 2026, we upgrade the stock to OUTPERFORM from MARKET PERFORM. The stock also offers attractive dividend yields of over 4%,” said Kenanga.
Risks to Kenaga’s call include further deterioration in the prospects for building jobs, rising input costs, and liquidated ascertained damages from cost overrun and delays. —Dec 15, 2025
Main image: Kerjaya Prospek
