PETALING JAYA: Kerjaya Prospek Group Bhd
, via its wholly-owned subsidiary Kerjaya Prospek (M) Sdn Bhd, has secured an award from Persada Mentari Sdn Bhd for building contract works at a proposed development at Pulau Andaman in Penang, for RM170.94mil.
Under the scope of the contract, Kerjaya Prospek will execute the main building works for the proposed development of a 45-storey service apartment comprising one block of 38-storey service apartments, a two-storey basement carpark, a five-storey elevated car park, a facilities floor and a wardrobe, kitchen cabinet and vanity mirror for a typical unit.
The contract commences on Jan 18, 2024, and will be completed within 35 months.
“The acceptance of the contract is in the ordinary course of business of Kerjaya Prospek Malaysia and is undertaken on an arm’s length basis, based on normal commercial terms which are not more favourable than those generally available to the public.
“In addition, the contract is expected to provide an additional stream of revenue for the group over the next three years,” it said in a filing with Bursa Malaysia.
Kerjaya Prospek revealed in the filing that Persada Mentari is an indirect subsidiary of Eastern & Oriental Bhd, in which certain directors and major shareholders of the group have direct and indirect interests.
The company said it received the mandate from its shareholders to enter into a recurrent related party transaction of a revenue of trading nature at the annual general meeting on June 13, 2023.
Meanwhile, Rakuten Trade vice-president of research, Thong Pak Leng said in a recent report that he is positive on Kerjaya Prospek’s outlook.
“Kerjaya Prospek targets construction job wins of between RM1.2bil and RM1.5bil for its financial year ended Dec 31, 2023 (FY23) and so far, has secured new projects worth RM1.2bil after stripping off the cancellation of the RM404.4mil building job awarded by Ecofirst Consolidated.
“This brings its total order book to RM4.4bil. Meanwhile, the group expects a job win of RM1.5bil for FY24.”
Additionally, Thong noted that Kerjaya Prospek has signed a framework agreement with Samsung C&T (KL) SB, a wholly-owned subsidiary of Samsung C&T Corp, in 2002.
Thong said this joint venture will pursue various types of business opportunities for construction contracts exceeding RM300mil.
“The company will continue to seek for new jobs via this joint venture focusing on construction of factories in Malaysia.”
Thong also noted that the group has 35 ongoing projects.
“The company has an outstanding construction order book of RM4.4bil as at Nov 30, 2023, providing earnings visibility over the next two-to-three years.”
For the third quarter ended Sept 30, 2023 (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.
