KUALA LUMPUR: Kerjaya Prospek Bhd is poised to exceed its replenishment target for the year following the acceptance of an RM265mil construction contract from a unit of Eastern & Oriental Bhd in Penang.

       The latest job win, its third in FY22, brings its construction orderbook to RM4.4bil, just RM27mil shy of the its FY22 job replenishment target of RM1.2bil.

       On the back of this development, RHB Research, revised its FY22 job assumption higher to RM1.6bil as it expects the group to secure more contracts before the year is out.

       "With more than eight months left before FY22 ends, we think that KPG still has room to win more job contracts given its net cash position as at 4Q21," it said.

       Consequently, the research firm adjusted its FY22-24 earnings forecasts higher by 2%, 1% and 2% respectively.

       RHB maintained its target price-earnings (PE) to 11 times, which is a 10% discount to the Kuala Lumpur Construction Index's forward PE ascribed in its sum-of-parts valuation to reflect pressure from high input costs.

       "Post earnings revision, we derive our new TP of MYR1.56 after applying a 0% ESG premium/discount to our SOP-derived intrinsic value, based on our in-house ESG proprietary scoring methodology.

       "Overall, we favour the stock for its ability to consistently replenish its outstanding orderbook," it said, while reiterating its "buy" call.