Kerjaya Prospek expects ‘strong rebound’ in 2H21

By HARIZAH KAMEL

KERJAYA Prospek Group Bhd expects to see a “strong rebound” in its construction and property segment in the second half of the year (2H21), supported by the government’s inoculation campaign that will bring back positive sentiments to the market.

Its executive chairman Datuk Tee Eng Ho (picture) said while the construction sector will remain as the main contributor to Kerjaya Prospek’s earnings, its property sector will recover gradually underpinned by the economic recovery and low interest-rate environment. As such, Tee said the group targets to launch two-property developments in 2H21.

The developments are Monterez Development (leasehold apartment) with an estimated gross development value (GDV) of RM250 million and Yakin Land Development (freehold apartments) with a GDV of RM380 million, Tee said in a virtual press conference on the group’s financial year performance yesterday.

Tee said the group is cautiously optimistic and will continue to examine the market situation and tweak its business strategies accordingly to meet the challenges ahead and safeguard its financial performance.

“We are confident Kerjaya Prospek will continue to deliver sustainable growth in the years to come to our shareholders,” he said.

Tee revealed that the group has sights on renewable energy (RE) such as solar, as a growth opportunity, adding that the group just set up a RE division and are reviewing some proposals.

Kerjaya Prospek’s net profit in the fourth quarter ended Dec 31, 2020 (4Q20) slipped by 23.28% year-on-year (YoY) to RM27.82 million, while revenue decreased 7.29% YoY to RM249 million as construction projects were halted as a result of the Movement Control Order implemented by the government in March last year in response to the Covid-19 pandemic.

Kerjaya Prospek’s construction segment achieved revenue of RM857.49 million in the financial year 2020 (FY20), a fall of 22% YoY from RM1.09 billion in FY19.

Its property development segment contributed RM2.7 million in revenue last year mainly from the sale of completed units at its maiden project, Vista Residences, Genting Highlands, which was completed in 2019.

Revenue from the manufacturing segment decreased to RM4.73 million in FY20 from RM11.50 million in FY19 and made a marginal profit of RM1.51 million for the year compared to a profit of RM3.93 million in FY19.

Kerjaya Prospek’s investment division made a profit of RM39.39 million in 2020 compared to RM39.25 million in FY19.