Kerjaya Prospek's New Power Infrastructure with TNB Project

Kerjaya Prospek Group Bhd (KERJAYA) has strengthened its diversification strategy after securing a major power infrastructure contract worth RM568.2 million from Tenaga Nasional Berhad (TNB) for the development of the PMU 500/275/132/33/11kV Paka GIS transmission substation in Terengganu.

The contract was awarded to an unincorporated consortium comprising Kerjaya Prospek (M) Sdn Bhd, Jati Tinggi Holding Sdn Bhd and Betapac Sdn Bhd. Under the joint venture structure, Jati Tinggi holds a 55% stake, Kerjaya 25%, and Betapac 20%. Kerjaya’s effective share of the project is approximately RM142.1 million.

The project, which involves the execution and establishment of a major transmission main intake substation in Paka, Terengganu, is scheduled for completion within 24 months from commencement. The company expects the contract to contribute positively to earnings between FY2026 and FY2028.

Analysts view the award as strategically significant despite its relatively modest contribution to Kerjaya’s RM6.0 billion order book. The project marks the group’s first power infrastructure job for TNB and its first venture into Terengganu, broadening both its sectoral and geographic footprints.

Kerjaya Prospek

The latest win raises Kerjaya’s year-to-date FY2026 contract awards to approximately RM3.5 billion, substantially exceeding its initial annual replenishment target of RM2.0 billion. The enlarged order book now stands at around 2.7 times FY2025 revenue, providing earnings visibility through FY2029.

The company has also expanded beyond its traditional high-rise residential construction segment, recently securing an RM858 million data centre mechanical, electrical and plumbing fit-out contract in Johor. Its tender pipeline remains healthy at approximately RM2.0 billion.

Maintaining a “Buy” recommendation, analysts kept their target price at RM3.75, citing strong order book visibility, expanding infrastructure exposure and continued earnings growth prospects. Key risks include rising material costs, labour shortages and dependence on related-party project awards.

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