Kerjaya Prospek’s 1Q18 profit increases 12.1%

by FARA AISYAH / pic by MUHD AMIN NAHARUL

KERJAYA Prospek Group Bhd posted a 12.13% growth in net profit for the first quarter ended March 31, 2018 (1Q18), to RM32.35 million against RM28.85 million achieved a year ago for the same period.

The increase is mainly attributed to the construction segment of the group, which currently has a substantial orderbook comprising projects that have been awarded by premium property developers in Malaysia.

In an exchange filing on Monday, the company stated that the property development segment is also expected to contribute positively to the group’s earnings moving forward with an encouraging take-up rate of the group’s property project in Genting Permai, Pahang.

The outstanding performance, especially in the construction segment, has also mitigated the slowdown in the manufacturing segment.

The company’s revenue for the three months also increased 9.4% to RM255.14 million from RM233.22 million gained in 1Q17.

“We are delighted to report that this quarter’s result is a record for the group, attributed to contributions from our various ongoing projects.

“With our current outstanding orderbook of RM3.05 billion, we expect to continue this momentum going forward as we work hard to deliver value for our shareholders,” Kerjaya executive chairman Datuk Tee Eng Ho (picture) said in a statement.

The current outstanding orderbook amount is the result of year-to-date contract wins for 2018 totalled RM357.3 million.

The group’s balance sheet also remained robust, boasting a net cash position of RM195 million and current ratio stood at 1.84 times.

On the group’s maiden project, Vista Residences in Genting Highlands, Pahang, has also recorded an encouraging take-up rate with its current unbilled sales of approximately RM62 million.

Moving forward, Kerjaya is focusing on the construction segment with the aim of making it the main revenue driver for the group.

The group will continue to exercise vigilance and prudence in achieving its objectives, while expanding in view of the current global and local economic environments.

Notwithstanding the group’s objective to expand its core business in construction, it will maintain the manufacturing segment as part of its integrated business objective and strategy, and complete the existing property development project.

Barring any unforeseen circumstances, the group is cautiously optimistic on its overall businesses moving forward and will continue to sharpen its competitive edge to achieve sustainable growth in the market.