In computer-aided drug discovery, quantitative structure activity relation models are trained to predict biological activity from chemical structure. Despite the recent success of applying graph neural network to this task, important chemical information such as molecular chirality is ignored. To fill this crucial gap, we propose Molecular-Kernel Graph NeuralNetwork (MolKGNN) for molecular representation learning, which features SE(3)-/conformation invariance, chirality-awareness, and interpretability. For our MolKGNN, we first design a molecular graph convolution to capture the chemical pattern by comparing the atom's similarity with the learnable molecular kernels. Furthermore, we propagate the similarity score to capture the higher-order chemical pattern. To assess the method, we conduct a comprehensive evaluation with nine well-curated datasets spanning numerous important drug targets that feature realistic high class imbalance and it demonstrates the superiority of MolKGNN over other graph neural networks in computer-aided drug discovery. Meanwhile, the learned kernels identify patterns that agree with domain knowledge, confirming the pragmatic interpretability of this approach. Our code and supplementary material are publicly available at https://github.com/meilerlab/MolKGNN.