by ASILA JALIL / graphic by TMR
KERJAYA Prospek Bhd is expecting its performance to significantly improve next year supported by pent-up demand for properties, political stability and the Covid-19 booster dose that will curb the spread of the virus.
Its non-executive chairman Datuk Tee Eng Ho said the group will see a lot of job completion in the next two years after being put in the backlog due to the pandemic.
“At least our political environment will be more stable in the coming months so we can focus on the work. The government is also giving booster shots for the virus which will bring down the number of positive cases,” he said during the media briefing for the group’s third-quarter (3Q) result yesterday.
For its 3Q ended Sept 30, 2021 (3Q21), Kerjaya Prospek’s net profit slipped 20.4% year-on-year (YoY) to RM24.18 million due to lower revenue contribution from non-operating income.
Revenue for the quarter increased 0.2% YoY to RM222.64 million due to progress in the onsite construction work.
For the nine months (9M21), Kerjaya Prospek’s net profit rose 6% YoY to RM66.57 million as a result of lesser impact on the progress of construction projects during the implementation of various movement restriction order compared to 9M20.
The group registered a higher revenue for the period at RM681.21 million, up by 21.2% YoY from RM562.15 million it made last year.
As at Oct 14, the group’s outstanding orderbook stood at RM3.6 billion of which RM1.6 billion is from related parties while RM761.9 million for infrastructure projects.
For the 9M21, the group’s construction segment registered total revenue of RM679.96 million, an increase by 21.6% YoY, helped by the shorter period of movement restriction this year that enabled construction work to progress.
The segment is expected to continue to be the main contributor to the group’s overall turnover and profitability moving forward. It will also maintain the manufacturing segment to complement its core business.
Its property development segment is planning to launch two new projects in the first half of next year namely the Monterez Development and Yakin Land Development, Tee said.
He added that the group does face a shortage of labour but the issue will be solved next year as the borders reopen.
“There was a slowdown but it is still manageable. The government just opened up and more of them (workers) will come in a few months. The process will most probably take up to six months,” he said.
He added that there were margin cuts between 2% and 3% due to the hike in price for building materials, on top of the delayed work as a result of the lockdown.
“The peak in the price hike for materials is over and prices will slowly drop in the coming months,” he added.