Kerjaya Prospek eyes RM800mil in contracts this year

  • Business
  • Friday, 26 May 2017

KUALA LUMPUR: Construction outfit KERJAYA PROSPEK GROUP BHD is confident of achieving the orderbook target of RM800mil this year.

The company has this month won the bid for two contracts worth RM284mil.

Executive chairman Datuk Tee Eng Ho said the company has secured about RM300mil of jobs so far this year.

“Currently, our tenderbook stands at RM1.8bil and we usually chart about 20% success rate.

“As for our overall outstanding orderbook, it is currently at RM2.6bil that carries earnings visibility up to 2020,” Kerjaya Prospek executive chairman Datuk Tee Eng Ho said following the company’s briefing on its first quarter results yesterday.

Tee, who was appointed to the board of property developer EASTERN & ORIENTAL BHD (E&O) earlier this week and effective June 1, said about RM600mil out of the total outstanding RM2.6bil order book were jobs from E&O.

He has a 74% stake in Kerjaya Prospek and owns 11% of E&O.

Tee pointed out that the company has also invested around RM88mil in industrialised building system (IBS) aluminium form work system for a more efficient and faster construction process.

“Usuallly we could build one storey per week and the aluminium formwork could be reused for the period of five years. I am sure that will make us an attractive to many property developers

“Thus this year capex is much lower at a little bit more than RM20mil as we have invested heavily last year,” he said.

UOB KayHian recently said Kerjaya Prospek would clinch at least RM800mil worth of new construction jobs this year, given its historical orderbook win track record.

The company has notable clients including E&O, ECO WORLD DEVELOPMENT GROUP Bhd and SP Setia Bhd.

The company has been using the IBS since 2010, which has reduced errors, cut down on labour costs as well as cash purchase of building materials.

Kerjaya Prospek posted a 22.36% rise in net profit to RM29mil for the first quarter ended March 31 compared to the same quarter a year ago on contributions from the construction business. Revenue for the quarter under review was 25.44% higher at RM233.2mil.

Commenting on the company’s cash pile of RM150mil, Tee said the company was mulling a higher dividend distribution this year compared to last.

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