Kerjaya Prospek’s outlook stays robust

By the Editorial Team · Wednesday, September 16, 2026

Kerjaya Prospek Group Bhd secured a RM38 million contract from Eastern & Oriental Bhd, boosting its outstanding order book to RM5.9 billion and surpassing its full-year contract target for FY26. Analysts maintain “buy” ratings and have raised earnings forecasts, citing strong project pipelines and diversified contracts that ensure steady growth and earnings visibility.

Kerjaya Prospek Group Bhd’s outlook remains strong, supported by a robust project pipeline and recent contract wins, according to market analysts. The construction company recently secured a RM38 million contract from property developer Eastern & Oriental Bhd (E&O), a related party transaction given the shared controlling shareholders between the two companies.

This latest contract boosted Kerjaya Prospek’s outstanding order book to RM5.9 billion. Year to date, the firm has secured RM3.4 billion in contracts, surpassing its full-year target of RM2 billion for the financial year ending December 31, 2026 (FY26).

Apex Research retained a “buy” rating on Kerjaya Prospek, raising its target price to RM3.75 from RM3.58. The adjustment reflects a revised FY27 earnings per share estimate of 25 sen, up from 23.8 sen, based on a price-earnings ratio of 15 times. The research firm also increased its order book replenishment projections for FY26 and FY27 to RM3.9 billion and RM2.4 billion, respectively, while maintaining a FY28 assumption of RM2.1 billion. Earnings forecasts were also raised by 1.5% for FY26 to RM254.4 million, 4.7% for FY27 to RM314.3 million, and 8.7% for FY28 to RM257.8 million. The current order book corresponds to a book-to-bill ratio of about 2.6 times based on FY25 revenue, indicating strong earnings visibility in the coming years.

BIMB Research similarly sustained its “buy” rating, increasing its target price to RM3.90 from RM3.40. While FY26 earnings estimates remained steady, the firm revised upward its order book replenishment forecast to RM4 billion from RM3.5 billion, driven by expected growth in data centre projects along with mechanical, electrical, and plumbing jobs. BIMB lifted its FY27 core earnings projection by 3.7% to RM315.6 million and FY28 by 5.5% to RM339.9 million. The research house valued the construction business at 19 times FY27 earnings, up from 17 times FY28 earnings previously. It noted that external contracts accounted for RM1.9 billion (59%) of year-to-date wins, while related party contracts made up RM1.3 billion (41%). BIMB highlighted that the increasing share of external contracts reflects Kerjaya Prospek’s efforts to diversify its client base, while related developers continue to provide steady recurring work.

Phillip Capital Research also maintained a “buy” recommendation with an unchanged target price of RM4.06. The research house kept its earnings forecasts steady, noting that the recent contract aligns with its order book replenishment assumption of RM4 billion. It suggested the contract could pave the way for future superstructure work within the same project. Phillip Capital added that the earnings outlook remains supported by strong contract flows from both E&O and Kerjaya Prospek Property Bhd.

Overall, analysts agree that Kerjaya Prospek’s solid order book and diverse project mix, which includes data centres, civil infrastructure, and industrial works, underpin a positive market outlook and sustained earnings growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.