Phillip Capital thinks prospects are solid for Kerjaya Prospek
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00:00 This Thursday, we take a look at Kejaya Prospekt after it secured a high-rise development contract
00:06 worth over RM200 million.
00:09 Phillip Research has a buy call on the group and a RM1.72 target price, implying a possible
00:14 upside of 23% from current levels.
00:18 Kejaya Prospekt announced that it has accepted a letter of award from Aspen Vision City,
00:22 Senebrahad for the design and building of a high-rise development in Seberang Perai,
00:27 Selantan, Penang for a total contract value of RM226 million.
00:32 The contract is expected to commence on 27 October and to be completed within 42 months.
00:38 Inclusive of this award, this takes the cumulative contract secured to date to RM1.5 billion,
00:44 surpassing its RM1.2 billion internal target and meeting Phillip Research's full-year
00:49 order book replenishment assumption.
00:52 Following this contract, Kejaya's outstanding order book increased to RM4.7 billion, providing
00:57 revenue visibility until 2027.
01:00 The Research House estimates this project to contribute around RM22.6 million to Petami
01:05 across 2024 to 2027, assuming a 10% PAT margin.
01:11 Phillip Research continues to like Kejaya for above-industry peers' project margin,
01:16 solid order book replenishment track record from reputable clientele, and undemanding
01:21 valuations.
01:22 Bloomberg data shows all six most recent calls on Kejaya Prospect being buys, which works
01:27 out to an average target price of RM1.64, which is 24 cent more than its last close.
01:33 [music]