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MARKET • 24/07/2026 11:28 AM

Kerjaya Prospek Edges Higher After RM52.5 Mln M&E Contract Win

KUALA LUMPUR, July 24 (Bernama) -- Kerjaya Prospek Group Bhd’s share price rose five sen to RM2.46 after securing a RM52.5 million contract for the execution and completion of civil, structural and basic low-voltage mechanical and electrical (M&E) works for a data centre in the Klang Valley.

At 11 am, 268,700 shares were transacted.

This is Kerjaya Prospek’s ninth job secured for financial year 2026 (FY 2026) and its first data centre-related job.

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Apex Securities Bhd said the contract, which is related to the proposed construction of a new 275-kilovolt consumer landing station for a data centre, would provide an additional stream of revenue over the next year.

“We assume a six per cent profit after tax (PAT) margin for this particular project, lower than the 10 per cent margin typically assumed for the group's core residential jobs, likely reflecting the sub-contract nature of the works and a more competitive third-party bidding environment.

“On this basis, the contract could contribute approximately RM3.2 million in PAT over its 5.5-month tenure, equivalent to roughly 1.3 per cent of our financial year 2026 PAT forecast of RM245.2 million,” it said.

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Apex Securities said the contract win is consistent with the group's target of a broader push into infrastructure-related segments, spanning industrial, data centre and commercial projects.

This should help diversify its revenue base beyond its traditional core of high-rise residential construction and related-party jobs, it added.

Therefore, it maintained its ‘buy’ call on the group’s shares, with an unchanged target price of RM3.34.

Meanwhile, Kenanga Investment Bank Bhd said that while the new PAT margin is lower than its usual 10 per cent range at about six per cent, the investment firm remains positive on the contract win as the six-month project would pave the way for new M&E tenders.

“While this contract value is relatively small, we welcome this maiden M&E contract win, opening new M&E job opportunities in the buoyant data centre space. 

“With this win, Kerjaya Prospek’s year-to-date job replenishment increased to RM2.15 billion, bringing its current outstanding order book to RM5.05 billion and providing strong earnings visibility over the next three years.

Hence, Kenanga Investment Bank maintained its ‘outperform’ rating and earnings forecast for the group, with a share target price of RM2.85.

-- BERNAMA

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