The contract win represents half of its orderbook target of RM1.2b for the whole FY19

by SHAZNI ONG / pic source: aspen.com.my

KERJAYA Prospek Group Bhd has secured a RM617 million contract for the construction of executive apartments in Aspen Vision City, Penang.

The construction firm said the contract win itself represents half of Kerjaya’s orderbook target of RM1.2 billion for the whole financial year 2019 (FY19).

The firm also said its wholly owned subsidiary, Kerjaya Prospek (M) Sdn Bhd has accepted a letter of award (LoA) from Aspen Vision City Sdn Bhd, an indirect subsidiary of Aspen (Group) Holdings Ltd and a joint-venture company between Aspen Group and Ikea Southeast Asia, to develop the proposed apartment project known as “VIVO” and “VIIO”.

The project is split into two phases, with the first phase “VIVO” valued at RM365 million, entailing piling, pile cap works and main building works for the development of 1,530 executive apartments, 14 units of shops, car park podium and common facilities.

The construction works will take 38 months from its scheduled commencement on Feb 14, 2020, and slated for completion by April 2023.

Meanwhile, the second phase “VIIO”, which is worth RM252 million, involves piling, pile cap works and main building works for the development of 980 executive apartments, nine units of shops, car parking podium and common facilities.

Kerjaya noted the construction works of VIIO shall be completed within 36 months from the commencement date to be determined later.

Kerjaya executive chairman Datuk Tee Eng Ho in a statement yesterday said the group is off to a great start in 2020 and is proud to have been awarded the contract by Aspen this year.

“This (contract) again demonstrates Kerjaya’s growing reputation as a contractor of choice in delivering high-quality projects on time without compromising on safety.

“I am excited for the years ahead as we seek to deliver earnings growth with our outstanding orderbook of approximately RM3.5 billion to date.

“The group will continue to aggressively tender for new works and expect positive outcomes from these tendering activities in due course,” he said.

Trading for the construction firm is expected to resume today after it was suspended yesterday pending the material announcement.

Its shares closed last Friday at RM1.32, valuing the company at RM1.64 billion.

The group’s net profit slipped 10.5% to RM33.01 million in the third quarter ended Sept 30, 2019, from RM36.88 million previously, on higher finance cost and tax expense.

Quarterly revenue fell 2.4% to RM263.33 million from RM269.89 million recorded in the same period a year ago.