RHB Investment Bank Bhd (RHB Research) has maintained a BUY rating on Kerjaya Prospek Group Bhd following the latter's joint venture with Aspen Vision Development for a proposed development in Seberang Perai Tengah.

RHB Research anticipates positive financial contributions from the development, lifting Kerjaya Prospek's FY25-FY26 earnings projections by 3% and 5%, respectively, while holding the FY24 forecast steady.

The new property venture, which is estimated to have a gross development value of RM1.7 billion, is expected to strengthen Kerjaya Prospek's project portfolio. The group's outlook remains optimistic, with a projected earnings compound annual growth rate of 14% over the 2023-2026 period, driven by increasing job flows in these key regions.

The proposed development plan for the Seberang Perai site, which includes 338 affordable housing units, 1,680 residential units, 1,680 serviced apartments, and commercial spaces, is set to benefit from direct access to Butterworth, Bukit Mertajam and Penang Island.

The project is expected to be completed in phases over seven years and market experts predict robust demand for these units.

As such, RHB Research has adjusted Kerjaya Prospek's target price from RM2.57 to RM2.67, reflecting a 29% potential upside and an expected 5% yield in FY24.