YESTERDAY, KERJAYA announced the award of two contracts from related parties worth a total contract value of RM197.7 mil, as detailed below:
1/ RM100.2 mil building contract from KPPROP for the construction of a 39-storey serviced apartment, Viera 15, in Shah Alam. The project will start on 17 Nov 2025 with a construction period of 34 months.
2/ RM97.5 mil infrastructure contract from E&O to construct five canal bridges linking Fasa 2A, 2B and 2C at Andaman Island, Penang. The work will begin on 24 Nov 2025 over 33 months.
“We are pleased to see KERJAYA securing its eighth and ninth job wins for financial year 2025 (FY25), bringing year-to-date contact wins to RM1.16 bil which make up 64% of our FY25 job replenishment assumption of RM1.8 bil and 72% of management’s target of RM1.6 bil,” said Kenanga.
Its current total outstanding order book stands at RM3.7 bil which will keep them busy for the next three years.
Kenanga continue to like KERJAYA for its innovative and hence high-margin formwork construction method, and its lean and hands-on management team with a strong execution track record.
Also, note its strong earnings visibility underpinned by a sizable outstanding order book and recurring orders from related companies of at least RM1 bil a year.
“However, we believe the positives are already reflected in the share price. We thus maintain our Market Perform rating which is supported by its decent dividend yields of >4%,” said Kenanga.
Risks to Kenanga’s call include further deterioration in the prospects for building jobs, rising input costs, and liquidated ascertained damages from cost overrun and delays. —Nov 12, 2025
Main image: Kerjaya Prospek
