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KERJAYA, through its wholly-owned subsidiary, Kerjaya Prospek, has accepted a letter of award from Eastern & Oriental Express Sdn Bhd for the execution and completion of 133 shop offices, 2 electrical substations and 1 compact substation in Elmina, Shah Alam for a fixed lump sum contract price of RM87.7 mil.
The project shall commence on 17 November 2025 and to be completed within 30 months from the commencement date.
“We view this development positively as it broadens the Group’s project pipeline and underscores potential contract wins ahead,” said APEX Securities.
Assuming a profit before tax margin of 11%, the contract is expected to contribute RM9.6 mil over a 30-month period, supporting earnings through the financial year 2028 future (FY28F).
With this latest award, the Group has secured 7 contracts year-to-date with a cumulative value of RM958 mil, lifting its outstanding order book to RM3.6 bil, equivalent to 2.0x FY24 revenue.
“Following the new contract award, KERJAYA’s FY25 order book replenishment remains below our earlier RM1.8 bil assumption,” said APEX.
With only 2 months left until the end of FY, APEX lowered their FY25 order book replenishment assumption to RM1.2 bil while maintaining their FY26 assumption at RM1.8 bil.
“We downgrade KERJAYA to Hold from Buy with a lower Target Price of RM2.34,” said APEX.
Risks identified by APEX include rising material costs, labour shortages, and high-rise office oversupply in the property sector. —Nov 6, 2025
Main image: Intraday.com
The post New win adds to Kerjaya’s expanding RM3.6bil order book first appeared on Focus Malaysia.
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