KUALA LUMPUR: Kerjaya Prospek Group Bhd
targets to secure construction contracts with a combined value of about RM1.5bil in its financial year ending Dec 31, 2024 (FY24), up from its target of RM1.2bil in FY23.
Chairman Datuk Tee Eng Ho said the group’s year-to-date construction contracts awarded currently stand at RM1.2bil, successfully meeting its target for the year.
He added that this figure will be sustained throughout FY23, as any contracts to be secured will be deferred to early next year instead.
Meanwhile, in a filing with Bursa Malaysia yesterday, Kerjaya Prospek disclosed that its RM404.35mil contract to build a main residential structure for Ecofirst Consolidated Bhd’s unit had fallen through.
Despite this setback, the group’s outstanding order book stands at about RM4.3bil.
In response this, Tee said the group will take the necessary steps to enforce its right to recover the pre-agreed damages payable as stated in the letter of award dated June 8, 2023.
“To us, it’s nothing significant. It’s a small thing and we may get a one-off gain,” he said during the group’s third quarter ended Sept 30, 2023 (3Q23) results briefing.
He added that there is no knock-on effect on the other projects at hand and emphasised this is the first time the group has faced such a situation.
For 3Q23, Kerjaya Prospek posted a net profit of RM35.57mil, up from RM28.81mil achieved in the same quarter in 2022.
Basic earnings per share rose to 2.82 sen from 2.28 sen in 3Q22.
The group reported revenue of RM362.23mil, an improvement from RM259.4mil in the previous corresponding quarter.
The enhanced financial performance was mainly attributed to the increase in revenue from its construction division by 33% to RM344mil and the property development division by 100% to RM17.7mil, as a result of the revenue recognition from The Vue@ Monterez project.
The board has declared an interim dividend of two sen per share, to be paid on Jan 12, 2024, for shareholders on the record of depositors on Dec 15, 2023.
For the first nine months of 2023 (9M23), the group’s net profit rose to RM96.55mil from RM86.2mil in 9M22, while revenue climbed to RM968.75mil from RM836.91mil.
The construction division continues to be the main revenue contributor to the group, accounting for about 98% of its 9M23 revenue.
“Despite the minor headwind faced by the construction industry due to the spiking price of cement, we have absolute confidence in our ability, track record and expertise to continue executing our ongoing projects and eventually improve our margins and earnings,” Tee said.
On its 4Q23 financial performance, Tee said it is expected to be better than 3Q23, with improved contributions from the property segment.
