Kerjaya Prospek's Shares Up Following Plans To Expand Property Portfolio In Penang

KUALA LUMPUR, Nov 12 (Bernama) -- Kerjaya Prospek Group Bhd shares rose in early trade in Bursa Malaysia today after the company expanded its property portfolio in Penang.

At 10.30 am, the company’s shares gained one sen to RM2.08, with 265,000 shares traded.

Yesterday, Kerjaya Prospek announced that its wholly-owned subsidiary, Futuprop Sdn Bhd, has entered into a joint venture (JV) and shareholders’ agreement with Aspen Vision Development Sdn Bhd to undertake a mixed development on a 33.52-hectare land in Penang.

The development will be undertaken via a special purpose vehicle (SPV) named Rivanis Ventures Sdn Bhd.

Kerjaya Prospek will hold a 55 per cent stake in the SPV, while Aspen Vision holds the remaining 45 per cent.

The land for the development will be acquired from Railway Asset Corp, a unit under the Transport Ministry, for RM156.49 million.

In a research note today, RHB Investment Bank Bhd (RHB IB) was upbeat on the development as it expanded the group’s property arm, which currently has projects in the Klang Valley with a gross development value (GDV) totalling RM800 million.

It highlighted that the proposed development in Penang comprises 338 affordable houses, 1,680 residential units, 1,680 serviced apartments, commercial retail shops and offices.

“The land is located between the Perai River and Taman Inderawasih, offers direct connectivity to Butterworth, Bukit Mertajam and Penang Island and can be accessed from the northern region via the North-South Expressway.

“More importantly, the land is close to Penang Sentral, which will feature the Penang Light Rail Transit (LRT) terminal in addition to the upcoming Juru-Sungai Dua elevated highway,” it said.

RHB IB said the estimated GDV for the project is around RM1.7 billion and will be completed over seven years.

Therefore, the investment bank lifted the forecast earnings for Kerjaya Prospek’s financial years (FY) 2025 and 2026 by three per cent and five per cent, respectively, to impute contributions from this upcoming proposed project while making no changes to the FY2024 earnings forecast.

RHB IB has maintained its ‘buy’ call for Kerjaya Prospek with a target price of RM2.67.

-- BERNAMA