KKB Engineering Bhd shares rose in midday trading, supported by investor interest following the group’s RM517 million contract win for the Samalaju Water Supply Phase 2 project and a higher target price from RHB Research.
At 12.07 pm, KKB gained one sen or 0.80% to RM1.26, with 271,500 shares traded. The stock opened at RM1.26 and touched an intraday high of RM1.30.
RHB Research maintained its BUY call on KKB and raised its target price to RM1.72 from RM1.45, implying about 43% upside from the research house’s previous reference price.
The research house said the Samalaju project, which includes a 160 million litres per day raw water intake and pumping main as well as a 120MLD water treatment plant, was KKB’s biggest water supply project in some time.
The contract lifted KKB’s estimated outstanding order book to about RM1.2 billion, while year-to-date contract wins have reached about RM1.3 billion, more than double RHB’s original FY2026 replenishment assumption of RM600 million.
RHB subsequently raised its FY2026 job replenishment target to RM1.3 billion and increased its earnings forecasts by 4%, 19% and 26% across its forecast years.
The research house also highlighted KKB’s estimated RM380 million tender book and RM221 million net cash position as at end-2Q2026.
At RM1.26, KKB was trading 1.0 sen above its last adjusted closing price of RM1.25.
