PETALING JAYA: Construction outfit Kerjaya Prospek Group Bhd
’s wholly-owned subsidiary, Kerjaya Prospek (M) Sdn Bhd has accepted a letter of award valued at RM256.4mil from Eastern & Oriental Express Sdn Bhd (E&OE) to execute and complete building construction works in Elmina West, Shah Alam.
The award marks the first contract win for the group for 2025.
In a statement, Kerjaya Prospek said the scope of the project includes the construction of 360 units of three-storey terrace houses, alongside a clubhouse, landscaping works, and other related infrastructure.
The project will be delivered in three phases, with construction slated to begin on Jan 20, 2025 and expected completion within 26 months.
The contract was undertaken on an arm’s length basis and based on normal commercial terms.
E&OE is an indirect subsidiary of Eastern & Oriental Bhd, in which certain directors and major shareholders of Kerjaya Prospek have direct or indirect interests.
Kerjaya Prospek chief executive officer and executive director Tee Eng Tiong noted that with the addition of this project, the company’s total outstanding order book now stands at approximately RM4.2bil.
He said this would ensure sustained earnings visibility for the next three years.
“This new project win exemplifies our commitment to drive great value for shareholders while solidifying our position as one of the top players in the construction sector.
“We look forward to continue delivering exceptional results and maintaining our momentum of growth as we embark on this new financial year,” he said.
In the third quarter of financial year ended Sept 30, 2024 (3Q24), Kerjaya Prospek posted a net profit of RM46.09mil, up from RM35.57mil in the year-ago quarter, which translates into an earnings per share of 3.65 sen as compared to 2.82 sen previously.
Revenue, meanwhile, rose to RM504.84mil from RM362.23mil in the comparative quarter.
For the nine months period, the group’s net profit rose to RM116.73mil from RM96.55mil in the previous corresponding period while revenue increased to RM1.24bil from RM968.75mil.
The board of directors declared a third interim dividend of three sen per share, with ex-date on Dec 13, 2024, and payable on Dec 20, 2024.
In a filing accompanying its 3Q24 financial performance, Kerjaya Prospek said it will continue to monitor and implement appropriate business strategies in a timely manner to address potential challenges.
This, the company said, included the volatility of the ringgit, shortage of skill manpower and rising material costs, which may have an impact on the operations and financial performance of the group.
“Moving forward, the group will focus on its construction segment to be the main revenue driver for the group.
“Notwithstanding the group’s objective is to expand its core business in construction, the group intends to maintain its manufacturing segment to complement its core business.”
