‘Kerjaya on track to meet target’
PETALING JAYA: Kerjaya Prospek Bhd may be receiving more contracts from HCK Capital Group Bhd following its second contract win of RM280mil from the latter.
Kerjaya announced that it had secured a contract for a proposed project rebranded as Edumentro in Subang from HCK Capital, which comprises main building works for four towers on a three-storey podium and a four-level basement car park.
“Should Kerjaya continue to deliver, we are sanguine of the possibility of more contracts from HCK in the future,” said Kenanga Research. It said in a research note that it is “neutral” on the win as it falls within its replenishment target of RM1.2bil.
“The new job win brings Kerjaya’s year-todate replenishment to RM435mil, making up 36% of our FY19 estimated replenishment target of RM1.2bil,” it said.
Assuming a conservative pre-tax margin of 15%, the project is expected to contribute about RM31.5mil to the group’s bottom line.
Kerjaya’s outstanding order book stands at RM3.3bil, which provides 2½ years visibility.
Moving forward, Kenanga is anticipating another replenishment worth about RM400mil from Kerjaya’s major shareholder’s private property arm for a mixed development in Old Klang Road.
Kenanga maintained “market perform” on Kerjaya with an unchanged target price of RM1.20 pegged to an unchanged valuation of 10 times price earnings ratio on FY19 estimated construction earnings.