By SHAZNI ONG / Pic By MUHD AMIN NAHARUL
Kerjaya Prospek Group Bhd targets to secure an orderbook of RM1.2 billion for its financial year ending Dec 31, 2019 (FY19), more than the RM989.8 million worth of jobs secured last year.
Executive chairman Datuk Tee Eng Ho (picture) said a 20% increase from last year’s figure is deemed achievable as the company had won contracts amounting to RM873 million as of April 2019.
“As of April this year, we managed to secure RM873 million jobs for the construction of high-rise residential property developments in the Klang Valley.
“We are tendering about RM1.5 billion worth of jobs… we have set a target of RM1.2 billion and it will not be an issue for us to achieve it,” Tee told reporters and analysts during the company’s first quarter (1Q) financial results briefing in Petaling Jaya, Selangor, yesterday.
The construction company is also tendering some RM1.6 billion jobs this year in light of the recovery of the infrastructure and property markets in Malaysia.
He also expects a double digit growth in sales on the back of more jobs secured this year, adding that the industry might improve in the second half of the year (2H19).
The group targets to launch two high-rise property projects in Shah Alam and Dutamas in 2H20, with an estimated combined gross development value of between RM650 million and RM700 million.
“We have condominium projects at the Monterez Golf and Country Club in Shah Alam and Dutamas, each will comprise 450 units priced between RM500,000 and RM600,000 per unit,” he said.
The firm will continue to partner property developers via a joint venture (JV), while focusing on its construction segment.
“The JV is a good option for the group in order not to exhaust our cashflow (from acquisitions), such as the need to acquire landbank,” he said, adding that the group is also looking for merger and acquisition opportunities.
The construction firm has allocated RM30 million in capital expenditure this year, mainly to acquire building equipment such as a tower crane, concrete pump and industrial building system framework.
In an exchange filing earlier, the firm stated that its net profit for the 1Q rose 8.38% to RM35.19 million, or 2.84 sen per share, on the back of an improved orderbook on construction and manufacturing segments.
Meanwhile, its 1Q revenue also increased 3.54% to RM264.18 million, attributable to the timing of delivery of works on its construction segment, as all of its ongoing projects were at their planned progression and encouraging take-up rate.
The construction segment remains as the group’s main contribution of revenue, representing 93.5%, while its property development segment contributes the remaining 6.5% of the group’s revenue.
Kerjaya Prospek shares closed one sen lower or 0.81% to RM1.23 yesterday with a market capitalisation of RM1.52 billion. No dividend was declared for the quarter.