It dropped a sen to RM1.13 in early trade, only to regain that single sen just before the lunch break to match its closing price of RM1.14 yesterday.

Eastern and Oriental Express Sdn Bhd (E&O) and Persada Mentari Sdn Bhd had earlier awarded the earthworks and infrastructure contracts to Kerjaya Prospek.

In a research note today, Kenanga Investment Bank is positive on the wins which brought the company’s year-to-date total wins to RM984 million or 66% of its financial year 2023 (FY2023) target.

This development puts the company firmly on track to hit its FY2023 full-year job win assumption of RM1.5 billion.

The latest win also raised the company’s outstanding order book to RM4.4 billion.

“We expect these contracts’ profit after tax margin to be 10% and we maintain our ‘outperform’ recommendation on Kerjaya Prospek with a target price of RM1.50, valuing its construction business at 13 times forward PER (price-to-earnings ratio),” it said.

Currently, Kerjaya Prospek’s tender book stands at between RM1.5 billion and RM2 billion.

This figure comprises building and reclamation contracts from affiliated entities like E&O and Kerjaya Prospek Property Sdn Bhd, as well as multinational corporation industrial warehouse and factories projects.

Additionally, the group’s joint venture with Samsung and third-party building projects in the Klang Valley also contributed to this impressive tender book value.