By S BIRRUNTHA / Pic By HUSSEIN SHAHARUDDIN
KERJAYA Prospek Group Bhd is expected to maintain its financial performance and improve it further within the next three years, while focusing more on high-rise building projects.
Kerjaya Prospek executive chairman Datuk Tee Eng Ho (picture) said the group is also looking to gradually diversify its business structure by landing government jobs and infrastructure projects.
“We target the new business to contribute about 20% assistance to the group. However, our core business will remain in the building of new high-rise — 60-storey to 70-storey buildings — as we are optimistic to get good response from buyers.
“We have received a commendable Construction Quality Assessment System (Conquas) score of 83.6, which is the highest in Malaysia under the high-rise building category,” he told reporters during the group’s second quarter (2Q) financial performance announcement in Kuala Lumpur yesterday.
The group’s net profit for the 2Q ended June 30, 2019 rose 1.75% to RM35.78 million from RM35.17 million a year ago, underpinned by better performance in its construction segment.
However, Kerjaya Prospek’s quarterly revenue fell 6.8% to RM259.4 million from RM278.4 million in the corresponding quarter last year.
Its earnings per share for the 2Q increased to 2.9 sen from 2.83 sen in the same quarter last year.
The construction division has remained the group’s main contributor, which currently accounts for 93.6% of the group’s revenue.
The property development and manufacturing segment contributed the balance of the top line and segmental profit after tax (PAT).
Tee added that the company’s Sky88 Johor project had received the Setia Quality Excellence Award with Conquas scores of 81.6 and 83.3 points, ranking the second- and fourth-highest respectively in Malaysia.
The group is also expected to maintain a steady financial position, driven by its current jobs secured for the orderbook.
The group’s current outstanding orderbook stands at approximately RM3.4 million as of June 30, 2019, with year-to-date (YTD) contract won for 2019 totalled at RM1.2 billion.
Its balance sheet remained strong with a net cash position of RM173 million and a current ratio of 2.22 times as at June 30, 2019.
Tee said the group is expected to sustain the momentum going forward and would strive to create value for stakeholders and shareholders. “We have managed to secure contracts amounting to RM1.2 billion (YTD), achieving our internal target of RM1.2 billion for 2019.
“I am pleased that Kerjaya Prospek recorded earnings growth in the 2Q19, and we will actively bid for more construction projects to replenish our orderbook,” he said.
Meanwhile, the group also posted RM523.5 million revenue in the first half of 2019 (1H19), which is a 1.9% drop from RM533.5 million recorded in its corresponding period last year.
Its cumulative net profit increased 5% to RM71 million from RM67.6 million a year ago.
Currently, the group is focusing on its high-rise project called Bloomsvale, which comprises two towers for residential and one tower for hotel and office suite. The project started earlier this year and is expected to be completed by 2023.
As of now, the first residential tower which has 66 levels had already recorded more than 50% of take-up rate.