Kuala lumpur: Shares of Kerjaya Prospek Group Bhd rose in early trading after the company secured a RM201.3 million contract to construct residential apartments in Selangor. At 10.30 am, the stock gained three sen to RM2.80, with 996,700 shares traded.

According to BERNAMA News Agency, Kerjaya Prospek chief executive officer Tee Eng Tiong stated that this is the company's first construction contract win for this year, elevating its total outstanding order book to RM4.4 billion. Apex Securities Bhd viewed this contract favorably as it represents Kerjaya Prospek's first win for the financial year 2026 (FY2026), enhancing the group's earnings visibility through to FY2029.

Apex Securities further noted that with an estimated 13 percent profit before tax (PBT) margin, the RM201.3 million project is projected to yield RM26.2 million in PBT over its 40-month duration. The securities broker expressed confidence in Kerjaya Prospek's ability to execute the project with minimal risks, supported by the group's strong track record in high-rise developments.

The securities firm also highlighted the developer's capability to deliver resilient performance despite macroeconomic challenges, owing to a substantial RM4.4 billion outstanding order book and a book-to-bill ratio of 2.4 times. Apex Securities mentioned that cost pressures remain manageable, with previous impacts from the crackdown on overloaded commercial vehicles easing as contractors optimize cargo planning and turnaround times.

Finally, Apex Securities expressed optimism about Kerjaya Prospek's order replenishment pipeline, particularly from its related-parties Kerjaya Prospek Property Bhd and Eastern and Oriental Bhd.