$KERJAYA / 7161 (KERJAYA PROSPEK GROUP BERHAD) -RM292.8m

Project Details: KERJAYA secured a RM292.8 million contract from UEM Sunrise’s subsidiary, Mega Legacy, to build a 57-storey serviced apartment in Kuala Lumpur, including 1,126 units, podium parking, sub-basement, facilities, and security room. Construction starts on 17 Sept 2024, with a 38-month completion timeline.

2024 Performance: This is KERJAYA’s eighth contract of 2024, bringing its total new job wins to RM1.55 billion, nearing the FY24 target of RM1.6 billion.

Order Book: The group’s outstanding order book increased to approximately RM4.7 billion, providing visibility for the next 3-4 years.

Earnings Forecast: The project is expected to contribute 2-3% annually to the Group’s earnings over the construction period, with an estimated RM29.3 million net profit based on historical net margins.

Outlook: Analysts have revised order book replenishment targets upwards to RM1.8 billion and increased earnings forecasts by around 2.2% for FY24-26 due to anticipated additional project wins.