KUALA LUMPUR: Kerjaya Prospek Bhd is poised to exceed its replenishment goal for the yr on the again of an RM265mil development contract from a unit of Japanese & Oriental Bhd in Penang.
The most recent job win, its third in FY22, brings its development orderbook to RM4.4bil, simply RM27mil shy of the its FY22 job replenishment goal for RM1.2bil.
On the again of this improvement, RHB Analysis, revised its FY22 job assumption larger to RM1.6bil because it expects the group to safe extra contracts earlier than the yr is out.
“With greater than eight months left earlier than FY22 ends, we predict that KPG nonetheless has room to win extra job contracts given its internet money place as at 4Q21,” it mentioned.
Outcome, the analysis agency adjusted its FY22-24 earnings forecasts larger by 2%, 1% and a couple of% respectively.
RHB maintained its goal price-earnings o 11 instances, which is a ten% low cost to the Kuala Lumpur Building Index’s ahead PE ascribed in its sum-of-parts valuation to replicate stress from excessive enter prices.
“Put up earnings revision, we derive our new TP of MYR1.56 after making use of a 0% ESG premium/low cost to our SOP-derived intrinsic worth, based mostly on our in-house ESG proprietary scoring methodology.
“Total, we favor the inventory for its means to persistently replenish its excellent orderbook,” it mentioned, whereas reiterating its “purchase” name.