Kerjaya Prospek’s construction segment to drive revenue growth

by NUR HAZIQAH A MALEK

KERJAYA Prospek Group Bhd plans to leverage its construction segment as the main revenue driver of the group moving forward, with an orderbook standing at RM5.56 billion as of March 31, 2021.

This is further supported by its outstanding orderbook as of the same period of RM3.4 billion.

The group’s chairman Datuk Tee Eng Ho said as the country moves forward with the nationwide immunisation programme, the prospects for Kerjaya should improve over last year.

Year-to-date, the company has won three contracts namely from BBCC Development Sdn Bhd, Tanjung Pinang Development Sdn Bhd and Persada Mentari Sdn Bhd for total construction works worth RM384.5 million.

Kerjaya posted a 26.8% year-on-year (YoY) rise in revenue of RM268.7 million for the first quarter ended March 31, 2021, on full resumption of its construction projects during the period.

Earnings increased by 18.1% YoY to RM26.4 million, mainly attributed to the increase in revenue.

Segmental results show its construction segment posted the strongest performance with an increase of 30.9% in revenue and is expected to continue to be the main contributor to the group’s overall turnover and profitability.

Kerjaya’s manufacturing division reported a loss of RM80,000 and its property development segment contributed RM1 million in revenue from sale of completed units in Vista Residences, while the group’s investment segment recorded RM3.5 million in profit.

As of March 31, the group’s cash and bank balances stand at RM291.79 million, while its total bank borrowings stand at RM123.79 million. Its balance sheet has a net cash of RM168 million with a current ratio of 3.2 times and net asset per share of 92 sen.

Kerjaya aims to launch two property developments in the second half of the year (2H21), namely the Monterez Development and Yakin Land Development, with a gross development value of RM250 million and RM380 million respectively.

The target completion date for both properties is the 2H23 and 2H24 respectively. Kerjaya’s share price rose three sen to RM1.26 at market close yesterday, giving the group a market capitalisation of RM1.53 billion.