The new launches will be the Monterex Development and Dutamas Development in 1H22, says CEO
by SHAFIQQUL ALIFF
KERJAYA Prospek Group Bhd is planning to launch two new development projects in the first half of 2022 (1H22) after focusing on its construction business last year.
Kerjaya CEO and ED Tee Eng Tiong said the group is optimistic about its plans despite the operating environment remains uncertain and it has a sizeable construction orderbook to fall back on.
Kerjaya recently secured its largest ever contract from a new client worth RM710.1 million, which took its outstanding orderbook to RM4.1 billion and provide earning visibility for the next five years, he said.
“The project is the first transit-oriented development in Malaysia, and the contract win speaks volumes of the market’s confidence in our ability to deliver high-quality developments,” Tee said.
Tee added that the new launches will be the Monterex Development and Dutamas Development (Yakin Land Sdn Bhd) in 1H22 with gross development values of RM380 million and RM250 million respectively.
Both the developments are targeted for completion in 1H24.
Kerjaya, Tee added, continues to carry out the risk assessments and implement various measures including cashflow of their supply and material purchase to get a better discount which will enable the company to keep the escalating raw material costs to a minimal and reduce disruption brought by the Covid-19 pandemic to the project timeline.
Kerajaya posted a 9% year-on-year (YoY) rise in net profit for its fourth quarter ended Dec 31, 2021 (4Q21) to RM30.39 million, while revenue climbed 14% to RM283.7 million mainly due to improved construction works.
Its balance sheet remains healthy and strong with net cash of RM176.3 million as of Dec 31, 2021.
Kerjaya’s full-year earnings increased by 6.8% YoY to RM96.96 million, while revenue jumped 19% YoY to RM964.9 million mainly attributed to higher progress billings as a result of higher site activities amidst fewer movement restrictions.
The group’s construction division made up 100% of total revenue due to the absence of any property development projects in the year under review.
Kerjaya declared its second interim dividend of two sen per share in respect of FY21, which will be paid on April 8, 2022, to the shareholders on the register on March 17, 2022.
Taken together with its first interim dividend, the total dividend declared by Kerjaya for FY21 amounted to 3.5 sen per share.