RHB Keeps 'Buy' On Kerjaya Prospek After Third Deal

KUALA LUMPUR, April 6 (Bernama) -- RHB Investment Bank Bhd (RHB IB) has maintained a ‘buy’ rating on Kerjaya Prospek Group Bhd (KPG) after the group secured its third contract this year.

RHB IB said the construction and engineering firm had clinched a RM98.8 million contract from Sena Letrik (M) Sdn Bhd for the main building, mechanical and electrical, and external works on a proposed private hospital in Bandar Seremban Utama, Seremban 2, Negeri Sembilan.

“Works on the private hospital will commence immediately and are expected to be completed within 18 months,” it said.

The investment bank said the latest win marked KPG’s first venture into healthcare construction, expanding beyond its core residential development segment.

Year-to-date, KPG’s new job wins total RM802 million, or 40 per cent of RHB Investment’s 2026 replenishment target of RM2 billion. Its outstanding order book stands at RM4.3 billion.

RHB IB reiterated its ‘buy’ call, albeit with a lower target price of RM3.11 from RM3.52.

“The group has not announced any launches from its 89-acre landbank for the financial year (FY) 2026. However, we expect the completion of The Vue and Papyrus in FY26 to enable provision write-backs, which could materialise in FY26 and FY27.

“This should support the property segment ahead of potential launches in FY27 for land in Jalan Puchong (7.4 acres with an estimated gross development value of RM800 million) and Tanjung Bungah (4.5 acres with an estimated GDV of RM830 million),” it added.

RHB IB also did not rule out the possibility of KPG venturing into industrial property development.

Meanwhile, Kenanga Investment Bank Bhd said KPG is tendering for local factory and data centre projects, with additional opportunities including RM2 billion worth of infrastructure works at Andaman Island.

In property development, its 55 per cent-owned Rivanis, a seven-year redevelopment project in Butterworth, is expected to sustain construction and property earnings over the medium term.

“We maintain our target price of RM3.05 with an ‘outperform’ call,” it said.

-- BERNAMA