Kerjaya’s 1Q earnings rise on higher billing 

The higher billings is attributable to increased construction activities in the quarter review

by AUFA MARDHIAH / TMRpic

KERJAYA Prospek Group Bhd’s revenue for the first quarter ended March 31, 2022 (1Q22), grew 5.9% quarter-on-quarter and 11.9% year-on-year to RM300.6 million.

The construction concern recorded a net cash position of RM197.3 million. 

Net profit for the quarter rose 9.4% to RM28.9 million on higher progress billings from its construction activities, while the higher top line coupled with lower operating expenses resulted in improved profit after tax (PAT) (PAT’s margin relatively unchanged at 9.6% from 9.8%). Profit margins were affected by higher raw material prices in the period.

Kerjaya non-independent and non-executive chairman Datuk Tee Eng Ho (picture) said the group resumed operations fully as of May and the group has submitted applications to recruit foreign workers to increase output.

“The group’s current tender book stands at RM1.5 billion to RM2 billion. Due to the pent-up demand in properties, more new development projects are targeted to be launched in the next few years and RM2 billion worth of projects are targeted to be completed in the next five to seven years due to opportunities in infrastructure,” he added.

The company’s construction business’ profit improved due to higher progress billings from increased construction activities in the quarter review.

The construction segment is expected to continue to be the main contributor to Kerjaya’s overall turnover and profitability moving forward.

The manufacturing segment reported a segmental profit of RM20,000 in the 1Q despite lower revenue recorded — the division will continue complimenting the group’s construction business.

Kerjaya’s property development segment posted a segmental profit of RM400,000 in the quarter with two upcoming development projects targeted to be launched in the first half of 2022 (namely Monterez Development and Yakin Land Development).

Kerjaya’s investment segment’s profit declined to RM2.3 million compared to RM3.5 million in the previous corresponding quarter mainly due to the gain on disposal of quoted shares reported in the preceding financial period amounting to RM1.4 million.

Kerjaya’s construction orderbook as at March 31, 2022, remained healthy with 36 on-going projects varying from 23 customers worth RM6.6 billion in contract value.