Kuala lumpur: RHB Investment Bank Bhd (RHB IB) has reaffirmed its 'buy' rating on Kerjaya Prospek Group Bhd (KPG) after the company secured its third contract this year. The construction and engineering firm has been awarded a RM98.8 million contract by Sena Letrik (M) Sdn Bhd for the main building, mechanical and electrical, and external works on a proposed private hospital in Bandar Seremban Utama, Seremban 2, Negeri Sembilan. The project is set to commence immediately and is expected to be completed within 18 months.
According to BERNAMA News Agency, this latest contract marks KPG's initial foray into the healthcare construction sector, diversifying beyond its core focus on residential developments. Year-to-date, KPG has secured new jobs totaling RM802 million, which represents 40 per cent of RHB Investment's 2026 replenishment target of RM2 billion. The group's outstanding order book currently stands at RM4.3 billion. RHB IB has reiterated its 'buy' recommendation, though it has adjusted the target price to RM3.11 from RM3.52.
The investment bank noted that KPG has not announced any new project launches from its 89-acre landbank for the financial year 2026. However, the expected completion of The Vue and Papyrus in FY26 may enable provision write-backs, potentially materializing in FY26 and FY27. This development could bolster the property segment ahead of potential FY27 launches for land in Jalan Puchong and Tanjung Bungah, with estimated gross development values of RM800 million and RM830 million, respectively. Furthermore, RHB IB did not dismiss the possibility of KPG branching into industrial property development.
Kenanga Investment Bank Bhd also shared insights, indicating that KPG is actively tendering for local factory and data center projects. Additional opportunities on the horizon include RM2 billion worth of infrastructure projects at Andaman Island. In the realm of property development, KPG's 55 per cent-owned Rivanis, a seven-year redevelopment initiative in Butterworth, is anticipated to sustain construction and property earnings in the medium term. Kenanga maintains a target price of RM3.05 with an 'outperform' recommendation.