KUALA LUMPUR: Kerjaya Prospek Property Bhd
is targeting to achieve RM300mil in sales for its property developments during its financial year ending March 31, 2025 (FY25).
Kerjaya Prospek executive chairperson Datin Toh Siew Chuon said the sales target will be supported by two development launches this year, with a combined gross development value (GDV) of RM395mil.
These include a residential development on 2.3 acres of land in Jalan Sentul Pasar, Kuala Lumpur, with an estimated GDV of RM220mil, as well as a serviced-apartment development on 2.2-acre site in Shah Alam with an estimated GDV of RM175mil.
“We are targeting to achieve about RM300mil in sales in FY25. However, we expect sales to progressively increase in line with our future developments,” Toh said during a briefing in conjunction with the group’s FY24 results release.
Further down the line, the group plans to launch a residential development on a 6.5-acre site in Damansara Damai, with an estimated GDV of RM430mil, early next year.
Toh highlighted that, currently, the group has about 61 acres of land, providing RM3.5bil in potential GDV over the next three to five years.
When asked if the group will continue to look for more land to acquire, Toh said: “Yes, because our gearing is still low.”
Currently, the group’s gearing ratio is at 0.18 times. Toh said the group is actively eyeing land in the Klang Valley and Batu Kawan in Penang.
Additionally, Toh said an ongoing project, Bloomsvale at Old Klang Road, a mixed development with a GDV of about RM1.3bil, has seen a good response.
“The retail component of Bloomsvale has hit 85% tenant commitment and we are targeting a grand opening in September with a goal of reaching 90% occupancy by then,” Toh noted.
Regarding office space at the same development, Toh said: “Over 60% of the office space is already committed. Out of the 35 floors, seven floors have been designated for our own use.”
Additionally, Toh expects that the hotel, Courtyard by Marriott KL South, within the Bloomsvale development, will open in June or July this year.
Meanwhile, a couple of weeks ago, Kerjaya Prospek announced a 70:30 joint venture with Aspen Vision City Sdn Bhd, involving the development of freehold site in Batu Kawan, Penang.
According to Toh, the GDV could approach RM1bil, with further plans to be finalised by the end of the year.
For its final quarter ended March 31, 2024 (4Q24), Kerjaya Prospek’s revenue more than halved to RM54mil compared with RM114mil in 4Q23.
Despite the drop in revenue, the developer saw a marginal increase in net profit for the quarter under review to RM24.8mil, versus the RM23.7mil reported in the previous corresponding quarter, mainly due to cost optimisations.
This brought the group’s FY24 net profit to RM93.3mil, inching up from RM91.5mil reported in FY23, despite a drop in its topline to RM337.1mil in FY24 from RM370.6mil in the previous financial year.
Kerjaya Prospek’s net profit margin for FY24 increased to about 27.7% from 24.7% in the previous financial year.
The group has declared a dividend of one sen per share in the final quarter, bringing the total declared dividend for FY24 to three sen per share.
