[%qnLG%] 
Research by Public
Neutral – TP RM1.96

" Secures RM275m Building Job from E&O”

Kerjaya Prospek Group (KPGB) was awarded a main building job worth RM275.3m from its interested related-party, Eastern & Oriental (E&O), for a 50-storey service apartment at Pulau Andaman, Penang. This job represents the 7th win in FY24. With this job win, cumulative YTD new wins amounted to RM1.25bn, representing 83.6% of our FY24 target orderbook. Assuming a low teens profit margin, the job is excepted to contribute about 3.7% per annum to the Group’s earning during the contracted period of 38 months. While positive on the contract wins, we keep our forecasts unchanged as this makes up part of our FY24 orderbook replenishment assumption of RM1.5bn. We retain our Neutral call on KPGB with a higher SOTP of RM1.96 (from RM1.72), pegged at a higher PER of 14x to the construction segment, below 16x sector average given its niche in high rise buildings.

Analyst:
Denny Oh
[%QDLG%]

$KLSE-KERJAYA 
Research by Public
Neutral – TP RM1.96

" Secures RM275m Building Job from E&O”

Kerjaya Prospek Group (KPGB) was awarded a main building job worth RM275.3m from its interested related-party, Eastern & Oriental (E&O), for a 50-storey service apartment at Pulau Andaman, Penang. This job represents the 7th win in FY24. With this job win, cumulative YTD new wins amounted to RM1.25bn, representing 83.6% of our FY24 target orderbook. Assuming a low teens profit margin, the job is excepted to contribute about 3.7% per annum to the Group’s earning during the contracted period of 38 months. While positive on the contract wins, we keep our forecasts unchanged as this makes up part of our FY24 orderbook replenishment assumption of RM1.5bn. We retain our Neutral call on KPGB with a higher SOTP of RM1.96 (from RM1.72), pegged at a higher PER of 14x to the construction segment, below 16x sector average given its niche in high rise buildings.

Analyst:
Denny Oh
Oh.BoonYeow@publicinvestbank.com.my

$KERJAYA / 7161 (KERJAYA PROSPEK GROUP BERHAD)