RHB Research has maintained a “Buy” recommendation For Kerjaya Prospek Group Bhd with a target price of RM1.45.
It said that it entered into a framework agreement with Samsung C&T for the purpose of, amongst others, regulating the parties’ relationship in relation to future business opportunities on any potential construction projects in Malaysia.
It said that it believes that the framework agreement is a positive step for the company to possibly widen its wings to more sophisticated projects compared to current projects that are mainly related to property.
Samsung C&T is a wholly-owned subsidiary of Samsung C&T Corporation (SCTC), a South Korean construction and engineering company listed on the Korean Stock Exchange. The competency and credibility of SCTC in the construction sector is reflected in its involvement of constructing super high-rise projects such as the Burj Khalifa in Dubai.
Other notable involvements comprise of infrastructures such as the Incheon Bridge and Busan Newport. As for Malaysia, notable projects built by SCTC consist of the KLCC Petronas Twin Towers, Menara Maxis, and Star Residences while ongoing projects include the PNB118 and Lot LL1M project by KLCC.
On its earnings and valuation, RHB said that no change are made to its estimates following the private placement exercise, it arrived at a new TP of RM1.42 for its SOP valuation.
